I work for a company based out of India. I worked in US in a H1 visa since 2008 on deputation, and I was paid US salary. In mid of 2010, I moved back to India and have been working here since then. I wouldn't be going to US for at least an year.
I know that I would need to show my wages in India when I file taxes in US for 2010. Would I qualify for Foreign income exclusion based on physical presence test?

You will file dual status tax return. You are nonresident after you left US.

Sounds like you might be a dual resident in 2010, the year you want to claim the exclustion. That is a resident part of the year and resident the other part.
In order to claim the foreign earned income exclusion, you must be a full resident or US citizen, or be able to elect to be a resident. For example, if you are married to a US citizen or a resident at the end of 2010 you may elect to become a resident for the full year. Otherwise a dual status alien who is single cannot claim the exclusion under any circumstances.

You however, in filing as a nonresident alien for part of 2010, should be able to exclude that income from being taxed, as foreign source income as NRA's aren't taxed on foreign source income, that's not effectively connected to the US. The fact that you work for a US employer won't classify it as effectively connected. So, you coud file a dual status alien, and exclude the nonresident foreign source income.

You might look at the treaty we have with India to see what grounds your US connected income maybe excluded, but I think that would be a long shot.

This is only a summation based on your question, you must review the rules for your particular circumstances to ensure you qualify.

Thanks for your answers.

I also did some browsing on IRS site for info related to dual-status. I understand that I would be a resident alien for part of the year and non-resident for the rest.
IRS website says dual status aliens aren't eligible to take standard deduction.
http://www.irs.gov/businesses/small/international/article/0, id=96433,00.html
The good thing is I don't have to pay taxes for the non-resident part, but the bad part is not being eligible for standard deduction.
Also, I got married last year after I left US. Would I be able to file jointly considering the dual-status?

Dual status aliens cannot file married filing jointly. Even for the part of the year they were a resident. There is an exception if you were married to a US resident at the end of the year or a US citizen. Or, either of you were dual residents, and on the last half of the year at least one of you were a US resident.

If that's the case you can make an election to be treated as US residents for the whole year, gaining the benefits of a full yr resident status, e.g. standard deduction, foreign exclusion, etc. This is discussed in pub 519, for 2010, p.9..

Best of luck