This is magic realism at its best. Consider this - Saleem Sinai, protagonist and narrator of the story, is born at midnight on 14 August 1947, the exact same time of India's independance. The story then weaves in and out of saleem's journey through life; a life which parallels the life story of india - this is where the magic realism comes in. it is simply brilliant, the way he does this.
Unfortunately, Rushdie's writing style is incredibly long-winded, making the going quite slow. i had to re-read the first chapter twice before i got it, and then it took me four months to finish it! but at the same time, it is this very use of rich language and imagery ('the pickling of time'... 'the chutnification of history') that makes this a great book..
And the cast of characters that rushdie concocts is fantastic, laced with humour and sarcasm (read carefully or you might miss it!). for example, Picture Singh, described as the most charming man on earth (he is a snake charmer), and Tai Bibi - A 512-year-old whore!
The novel won the 1981 Booker Prize and was later awarded the 'Booker of Bookers' Prize in 1993. Not for everyone, though.