The phone has the ability to store up to 6,000 songs on a 32 GB memory card.
Last Friday, the apex court had ordered Nokia to give a Rs 3,500-crore (Rs 35-billion) guarantee before it transferred its Sriperumbudur facility, one of its biggest plants globally.
The smartphone is priced at Rs 9,199.
Microsoft has launched its first 4G device, the Nokia Lumia 638 with Windows Phone 8.1 at a price of Rs 8,299.
These will be priced at Rs 5,999 and Rs 6,499 respectively
It's planning to offer unique apps such as Office 365, One Drive and X-Box Games.
The device is being labelled as the phone for 'selfies and skype'.
All future smartphones from Microsoft will be under the Microsoft brand, which means Nokia brand will now be phased out.
In February this year, Nokia had announced the 'Nokia X' family of affordable smartphones, running Google's Android apps, at the Mobile World Congress in Barcelona.
Budget smartphones will rule the market in 2015.
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