It has a 1.3GHz quad-core processor and 8GB of memory, which can be expanded to 32GB.
On the Freedom 251 website, Ringer Bells states that its vision is to "empower citizens, even in the remotest rural and semi-urban centres of India, with the latest in digital technology at incredible affordable prices and cascade knowledge, news and current issues so that all experience the confidence of inclusive growth and equal opportunity".
It features a 3.2-MP rear camera and a 0.3-MP front facing camera and a 1,450-mAh battery.
The smartphone comes with pre-installed apps like Swachh Bharat, Women Safety, WhatsApp, Facebook and Twitter, among others.
Sporting a 4-inch Wide Video Graphics Array display and a 540×960 resolution, the Freedom 251 will cost a measly Rs. 251.
The world record for the cheapest smartphone has been smashed with the introduction of a device that costs just £2.50. The phone is yet to hit the market.
Ringing Bells, based in the Delhi satellite city of Noida, was set up only a year ago and the launch event for the new phone on Wednesday night was attended by a senior leader from Prime Minister Narendra Modi's party.
Cheap smartphone handsets, many of them Chinese-made, are readily available in the Indian market but domestic competitors are making inroads, with models selling for less than $20.
India is the second-largest mobile phone market in the world, behind China, but only 19% of the population are on the internet.
In the last few months, global smartphone makers, including the likes of Xiaomi, Motorola and Gionee have commenced assembling their handsets in India, where the government is pushing local manufacturing through its Make in India initiative.
Source: Freedom 251, world's cheapest smartphone launch event
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