Google is developing a sub-$100 smartphone in partnership with three Indian smartphone makers which will hit the market in Q3.
The partners in India include Micromax, Spice and Karbonn who will be making phones with software provided by Google.
Targeted at emerging markets, the low-cost smartphone designed by Google will be sold under the brand 'Android One'.
Android One phone would feature 4.5 inch screens, dual SIM cards and FM radio.
Google SVP of Android, Chrome & Apps Sundar Pichai said, "We're working with partners on a comprehensive solution -- which includes hardware reference platforms -- to address the mobile computing needs of those in emerging markets."
"Android One will provide smartphones that are high quality, affordable and come with reasonable data plans."
Mozilla, the US creator of the Firefox web browser is also working with Chinese chip maker Spreadtrum Communications to release ultra cheap Firefox OS smartphones in emerging economies like India and Indonesia.
Mozilla is planning to these smartphones as low as $25 in emerging markets in the coming months.