Xiaomi also launched its second smartphone 'Redmi 1s', which will hit Indian shores on September 2.
Priced at Rs 5,999, the second smartphone from Xiaomi's portfolio to be launched in India, will be put on sale on Flipkart on September 2 from 2 pm onwards.
The Redmi 1S will be available only to those who have registered by Tuesday midnight on September 1 and they will be eligible to purchase the handset from September 2 onwards, Xiaomi Global Vice President Hugo Barra said.
"The Redmi 1S is the first phone of the Redmi family made available in India. It offers the best quality and user experience and at a very affordable price point. The device offers a great 720p HD screen, an 8MP camera that delivers superfine quality images, great battery life and a range of software features," he added.
The dual SIM Redmi 1S features a 4.7-inch display, 1.6 GHz quad-core processor, 1GB RAM, 8GB internal memory (expandable upto 64 GB), 8MP rear camera and 1.6MP front camera.
Xiaomi is estimated to have sold 90,000 units of Mi3 smartphone, which was launched in the country for Rs 13,999.
So far, the company has conducted six rounds of sale with about 10,000-20,000 units being offered each time. The company claims to have been sold out in under five seconds in each of these rounds.
Touted as the 'Apple' of China, Xiaomi is one of the latest entrants in the multi-billion Indian smartphone market, following other Chinese firms like Oppo and Gionee.
India is the fastest growing smartphone market globally with research firms like IDC pegging the growth here in double and triple digits.
According to IDC data, the smartphone market in India grew 84 per cent in the April-June 2014 quarter to  18.42 million units from 10.02 million units in the year-ago period.
Samsung dominated the market with with 29 percent share, followed by Micromax 18 percent, Karbonn 8 percent and Lava six percent in Q2 2014.