If you want to stay within the Royal Enfield fold, you can look at the Hunter 350, which will feel much more manageable and comfortable than your older Bullet. But if you want to get a new version of your bike, the base Battalion Black and Military variants of the Bullet 350 will fit in your budget.
The latest Bullet is a refined, comfortable and reliable machine which should return decent fuel economy, when ridden sensibly. Do bear in mind that with the Hunter, you will get dual-channel ABS. But the Bullet’s base models only come with single-channel ABS and a rear drum brake.
Alternatively, other options from reputed brands worth considering are the TVS Ronin, Apache RTR 200 4V, Honda CB300F, and Bajaj Pulsar N250. These smaller bikes will offer similar performance to the RE 350s – if not more – while being more fuel efficient too.
Take a test ride of these machines before you make a decision.