3 AC provides extra comfort and privacy. The price tag is also little higher than that of 3E.
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3AC v 3E, which is suitable for the Indians, will really depend upon priorities. While being more comfortable in terms of extra space, proper bedding, curtains for privacies, and cost a bit high, the main advantage lies within 3AC.
Its counterpart is obviously 3E, more for the wallet. While it has AC and comfortable berths, it is slightly more crowded with less privacy. It is good to opt for 3E in case you only care about your budget and you do not mind a little squeeze.
But in case you wish to spend the extra money on comfort and space, especially in longer journeys, 3AC is a great option.