The company may offer phones at around Rs 20,000, less than half the starting price of Apple handsets.
Xiaomi, which sells its phones exclusively through e-commerce website Flipkart.com in India, is looking to find a foothold in a market that has at least 80 different phone companies fighting it out for market share.
On Sept 15 Google launched the first of its Android One phones in India aimed at making smartphones more affordable for the masses.
Xiaomi Mi 4i is attractive but camera quality could have been better.
Chinese smartphone maker Xiaomi has suspended its sales in India following directions of the Delhi High Court, restraining sales of its products.
'We are offering one year of free music and three months of free movies to a million users through MIUI8.'
As many as 40,000 units of the much-hyped handset launched exclusively on Flipkart, was sold out within 4.2 seconds, said company head Hugo Barra on Twitter.
Xiaomi Inc said it had upgraded its operating system to ensure users knew it was collecting data from their address books after a report by a computer security firm said the Chinese budgetsmartphone maker was taking personal data without permission.
The biggest attractions of the phone are the Sunlight Display and virtual IVR.
The company is also looking to invest in Indian start-ups.
The strategy of selling the phone will remain the same.
China's smartphone giant Xiaomi on Thursday launched its new flagship phones to rival iPhone 6 at virtually half the prices and vowed to expand its India operations, brushing aside the legal challenges it faced over patent issues.
Chinese smartphone maker Xiaomi Inc has tied up with Taiwan's Foxconn to start assembling phones in India.
Xiaomi has unveiled its flagship Mi5 handset, priced at Rs 24,999.
Handset maker Xiaomi will set up a research and development unit in Bangalore, its first such facility outside of China, as it looks to beef up presence in the booming Indian smartphone market.
Xiaomi said in a statement that "it isn't easy" to build up a patent portfolio as a start-up company, but it aims to have filed 8,000 applications by 2016.
Lei Jun, founder and CEO of Xiaomi, in an internal letter on Wednesday, announced that the company has sold one million smartphones in the first 18 days of this month in India, state-run China Daily reported.
Whether they live away from their families or with them, all CEOs struggle with work-life balance, says Shyamal Majumdar.
India is the world's third-largest smartphone market.
Digitally driven businesses have cut short the time to market significantly.
As Chinese gadget-maker Xiaomi, the world's third largest smartphone seller after Apple and Samsung, turns five today, it will seek to intensify its India push. But there are miles to go before it can claim true success in India, as a harrowing experience of one of its smartphone users suggests.
A successor to Mi 4, the 'i' in 4i reflects Xiaomi's focus on India even as the Chinese company is losing ground to Apple on home turf.
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