I have an iphone 5 from austrailia running on iOS 7. should i update it or not?

i am using an iphone 5 from austrailia and i'm currently living in india. I'm not sure if its unlocked legally or not. Should i update my phone from iOS 7 to 8.2? If not what problems can i face while updating it?

Has the phone been officially unlocked by the carrier? Check this article:
iPhone: About unlocking
If yes and your SIM is not recognized, see this article for more information.

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