The company has priced Lumia 625 at Rs 19,999 and the phone will be available in the market in 3-4 days, while the Lumia 925 is already available in the market for Rs 33,499.
Stating that India is amongst the top three markets globally for Lumia, Nokia India Director Marketing Viral Oza said: "We have launched 12 Lumia devices in 18 months... Thats amazing speed when you have a platform which is launched from scratch."
He said the company is targetting the youth in the age group of 18-25 years.
"Our focus consumers are the 18-25 year old youth and within that depending on the kind of offering we have, we appeal to different parts of them," Oza said.
He said for 625, the company is appealing to somebody who wants a smart and affordable device which has the advance Lumia features and a large screen where they can enjoy entertainment.
Lumia 625 features a 4.7 inch LCD screen, which can be viewable in direct sunlight and offers a super sensitive touch technology for operation with gloves or nails.
The company is offering free movies worth Rs 4,275 on an application by Digitainment which is available on the device.
The Lumia 925, which was launched in May in London, is the flagship device, which is lighter than the earlier model and has a metal design.
Nokia is facing stiff competition from iOS and Android- based phones in smartphone category.
Nokia, which had been holding fort in the Indian market for over a decade, has been replaced by Korean handset maker Samsung as per the latest Voice&Data Survey.
Samsung became the market leader with a 31.5 per cent market share while Nokia was down by a rank to be placed at number two in the survey with a 27.2 per cent market share.
According to research firm Gartner, Nokia's Windows Phone sales have sequentially improved reaching a volume of 5.1 million units, but it was still at a tenth slot in terms of market share in smartphone segment in the first quarter of 2013.