think you haven't read it correctly. There are android devices right from 90$ in India. You could get a Samsung galaxy y for 100$ of course it'll be laggy and all that plus the small screen but hey its a cheap droid and works for most people who just wants to be able to take basic pics, do the basic phone ops. Lumia 520 is the cheapest wp8 around 150$ at present ₹ $ rate. An apple iPhone for 400$ is in my opinion a good price given how overpriced their products usually are, and apple is known for brand value, sheer product quality more than anything else. A 400$ iphone will absolutely kill the mid budget market cant wait for the news!
Maybe I was generalizing a bit too much, I should have written devices which matter cost around 200$. I cannot use android phones which are 8000 INR with dual core gingerbread and ICS phones, they are wrose than feature phones. Micromax, Lava have compelling good phones for 13000 INR and above .. below that horrible. I have used all these Galaxy Y , Xperia Miro, Tipo , Canvas 2 , K900 (good phone for the price) etc ... I know what phones are selling well at least in Delhi
Maybe a 400$ will kill it in the mid segment , who knows. All I am saying is it should be 300$ to kill off all these local manufacturers and scare the hell out of Samsung and Nokia since it would basically mean you could have an iOS device with insane amount of good apps.
Btw 300$ = 20000 INR , 400$ = 27000 INR . 7000 INR in India is huuuge. Lets wait and see , Sep 10 is days away