Murali Retineni, executive director of Celkon Mobiles, said 'Win 400', the first Windows phone from Celkon's stable, runs on Windows Phone 8.1 operating system (OS).

"Our plan is to bring more smartphones on the Windows platform. The next in line will be a 5-inch Windows phone, which is currently in the testing stage," Retineni announced in a press conference.

Celkon currently holds a 4 percent share in the Indian smartphones market and is aiming at taking this to between 7 percent and 8 percent by March 2015, he added.

Rajiv Ahlawat, director (mobility), Microsoft India said 'Win 400' would be their most affordable offering. "We would like to develop a larger portfolio of Windows phones in association with Celkon," he said.

Ahlawat said Microsoft is aiming to develop with its partners an ecosystem in India which would place it in a much bigger position in the next six to 12 months.

The new handset features a 4-inch high-definition display, powered by 1.2-gigahertz Qualcomm Snapdragon 200 chip set and backed by a 1,500-mAh lithium ion battery. It sports a 5-mega pixel rear camera with LED flash and a 1.3-mega pixel front-facing camera.