Android-powered Aakash to target kids and students.
The seven inch Aakash - which means sky in Urdu - has been developed by UK company Datawind with a subsidy from the Indian government.
An initial run of 100,000 tablets will be made available to students, with millions to come after.
"Soon, a $35 computer will be made available to every child in school," said telecoms and education minister Kapil Sibal. "The tablet will help enhance the quality of learning of children."
The tablet has a 366-MHz co-processor with 256MB of RAM and 32GB of flash memory.
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