The Nokia X2 was unveiled globally in June as a successor to its Android-centred Nokia X handsets.
Nokia X2 is representative of the evolution of the Nokia X family, delivering an enhanced experience across user interface, hardware and apps, Microsoft said in a statement.
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.
It has four devices -- Nokia X, Nokia X+, Nokia XL and Nokia X2 -- under the Nokia X range. Microsoft also sells Asha and Lumia range of smartphones.
With a 1.2GHz dual-core Snapdragon processor on-board, the dual SIM handset will have a 4.3-inch ClearBlack display, 1GB RAM, 5MP rear and VGA front camera and 1,800 mAh battery.
Besides supporting Microsoft apps like Skype and Outlook, the handset will offer 15GB of free cloud storage on OneDrive.
"The enhancements on the Nokia X2 lead to a richer, faster and easier experience designed to introduce the 'next billion' people to the mobile Internet and cloud services," Nokia India Sales (a subsidiary of Microsoft Mobile Oy) Head Mobile Phones Sari Harju said.
Microsoft Devices operates the handset business acquired from Nokia earlier this year for over $ 7.2 billion.
The roadmap ahead for the Nokia X family is, however, not clear.
Microsoft, in July, had said it plans to shift select products from the Android-powered range to Windows platform as it beefs up the affordable Lumia range.
The sub-Rs 10,000 smartphone category is a fiercely competed segment with international as well as homegrown players such as Micromax, Karbonn and Lava vying for a larger chunk of the market.
Microsoft estimates the affordable mobile devices market to be a "$ 50-billion annual opportunity".
According to analysts, India is the fastest growing smartphone market globally with over 44 million smartphones sold last year.