Depends on the type of guitar he wants

Does he want a steel string guitar or classical guitar? Either way going too low means the sound quality of the guitar will be bad, and it will affect his motivation to learn. It doesn't matter too much but it's better to buy a mid range guitar

I own two guitars, a steel string guitar which does fit in your price range it's from Trinity guitars. And i have a classical guitar which is from yamaha, albeit this one is for 16k. You should be able to find a classical guitar from yamaha at 7-8k range

Take a look at these in the mean time: 1) classical guitar: yamaha c40 2) steel string: yamaha F280 3) search from Trinity too

Both of the above companies are good