If i use local database, say MySQL, it works perfect on simulator and emulator but for real device, localhost won't do, So i tried online database hosting.
When using online hosting from www.freemysqlhosting.net, i had setup the database in my database development perspective in Eclipse using the provided id and password, so it worked well on my simulator, emulator and real device that was connected to the same network as that system on which that database was setup, but for any anonymous device,it failed!
Then i tried with sqllite, again it worked with simulator and emulator but for real device,it showed UNRESPONSIVE_HOST error.
My question is: if i want to develop an app using IBM Worklight that uses some database and want to distribute it, how can i do it?
Your problem is not with the SQL server it is with the connection between the device and the Worklight server. You need to be able to connect from the device to the Worklight server. Open a browser on the device and point it to the Worklight console and see that you can access it.