Smartphones are the backbone of the Digital India campaign. If the Indian government wants to achieve its goal of creating a majorly cashless society, the smartphones are going to play a very important role because most of the monetary transactions are going to happen using smartphones.
Smartphones also help people to stay connected with each other and with all the information and resources available on the Internet. This is why the Indian government wants smartphones to be as affordable as possible.
According to this First Post report the Indian government has asked smartphone makers to manufacture smartphones that would cost less than Rs. 2000.
The main India smartphone manufacturers are Micromax, Karbonn and Intex so the government has approached these companies to make the smartphone models that would cost less than Rs. 2000.
Since most of the low-cost smartphones are purchased with cash and since all the companies mentioned above primarily sell low-cost smartphones, there has been a drop in sales due to, allegedly, demonetization. Recently the Indian government declared the existing Rs. 500 and Rs. 1000 notes redundant which means you cannot use them to buy stuff. Because of this, the report says, people haven’t been able to buy low-cost smartphones and hence these companies are in a fix.
All the necessary technologies to carry out cashless transactions securely and safely will have to be incorporated in these sub-Rs. 2000 smartphones, according to the government instruction.