The handset is equipped with Android operating system, a 3.2-inch multi-touch screen, five megapixel camera and Wi-Fi.

"Indian mobile phone market today is very dynamic and price sensitive. With the new launches, we try to get interesting new elements in the industry and are very positive that it will create the desired newness in the industry," Rahul Goel, COO, Videocon Mobile Phones said.

Android is an open-source operating system for mobiles and wireless devices, initially developed by Google, which allows developers to design applications independent of the handset type. It allows users to download over 70,000 applications like games, music, music players and location-based services.

Handset makers like HTC, Samsung, Motorola and Spice have already launched Android-powered phones in India, with more companies looking to joining the bandwagon soon. Many players like Dell have also introduced tablet PCs based on the platform.

According to research firm Gartner, Android operating system comprised 17.2 per cent share of the global smartphone market for the quarter ended June 2010, third after Symbian and Research in Motion.