Google's Eric Schmidt talks about cheap smartphones starting at Rs. 2,700 / $50

Google's executive chairman Eric Schmidt says a basic smartphone with a web browser and web-client apps would be available in the market at a price of around $50.

A $50 smartphone with basic functionalities including a web browser and web-client apps will be soon a reality, says Google Inc.'s executive chairman Eric Schmidt.

Without revealing any details about the stage of development of such a smartphone, Schmidt said Google encourages mobile phone manufacturers to develop cheaper devices with the web-browsing capabilities as it helps increase 'mobile-based Internet penetration'.

Business Standard in its report points out the availability of an internet-enabled smartphone at this price point – approximately Rs. 2,700 (direct currency conversion) could have a huge impact in India. The report says usages of mobile-based Internet in India is as high as 25 percent as compared to 15 percent global. The figures could go up if such smartphones are made available to the Indian customers.

While talking to the media, Schmidt added the dealing with the local governments was among the biggest tasks in all market where Google has its operations. He expressed hope the Indian government does not go China's way and become regressive. “Outsourcing created one kind of boom and now more investment in internet can create a bigger boom,” he said.

Google executive chairman Eric Schmidt is currently in India as part of his mini-Asia tour and is slated to visit various countries in the continent. Schmidt is scheduled to address The Guardian's Big Tent Activate India event scheduled on March 21 in New Delhi.

Schmidt has already set the media abuzz with his critical views about India's stance on the Internet freedom. In an article published in Times of India, Schmidt said: “Now is the moment for India to decide what kind of internet it wants for them: an open internet that benefits all or a highly regulated one that inhibits innovation.”

“The past 10 years show that the safest economic, social and political bet is on openness. Where there is a free and open Web, where there is unbridled technological progress, where information can be disseminated and consumed freely, society flourishes.”