Should I have my infected dental implant removed? Tooth #14, it was implanted 8 years ago. (photos)

The x-ray reveals peri-implantitis which means an infection around the dental implant. The condition is can be successfully reversed and can be cured by raising a gingival flap, removing the entire granulation tissue, placing the bone graft and carrying out GBR (Guided Bone Regeneration). 
Such a procedure will cost around $500 in India. Hence, if you add up the airfare to the total treatment expenditure, you will still save around 50% of the treatment charge quoted for you by your local doctor.

You must remove the implant and not put anything else, so the tissues: bone and gum will recover better, place a new graft right now, you take the risk of getting infected.
good luck

You have two options in this situation. If the treating doctor can lift the gums and get good access to thoroughly clean the area and remove all granulated tissue and any discharge/pus to get down to healthy bleeding bone, then the area can be grafted with a membraneous guide and allowed to heal for 6-8 weeks. You will need a course of antibiotic and oral anti-microbial topical mouthwash while you heal. Follow-ups can then verify if healthy osseointegration of the implant surface has taken place with the surrounding newly formed bone. Again this is highly contingent on initially taking time and really cleaning the area out well. 
Second option is simply to call it a day, remove the implant along with any diseased or infected tissue again down to healthy bone, graft the area, wait and place a brand new implant in the now fully healed new healthy bone. This option may be more costly but it has a higher chance of success due to less variables being involved in the process. 
If you are a U.S. resident, I would not suggest doing this abroad, this type of treatment requires several follow ups and even when done carefully, there is still a chance of failure. Lack of professional liability abroad is also a concern, if there are unforeseen complications there will be very little liability to account for abroad. Cheaper is not always better, please keep that in mind, good luck!