A bunch of people from several universities have created the Worlds first Digitized Indian String Instrument, the ESitar.

From the project webpage:

Project Description and Goals
The purpose of this project is to use microcontroller technology to create a real-time instrument that models the Sitar. This Electronic Sitar (known as the ESitar) has digitizing sensors, custom positioned to traditional Sitar technique, which converts human musical gestures to binary code which machines can comprehend. These signals can then be used to trigger real-time sound and graphics.

The ESitar in action

Also, on the same page you can find links to the Electronic Tabla and Electronic Dholak.