The market for 4G devices in India is becoming increasingly affordable and there are around 15 phone models which are available at a price point of Rs 5,000 or lower, a report by Kotak Institutional Equities said.

The report said it is now possible to buy a 4G device for as low as Rs 4,000 (or $60) with a 5-inch screen size, 1.1 Ghz quad-core processor, 8GB internal memory, 5MP camera and 2,300 mAh battery, which are good enough entry-level specifications.

"Six-months back the cheapest 4G-enabled smartphone used to cost Rs 7,000 ($105) approximately," it added.

The report said smartphone penetration in the country is increasing at a fast pace, driven by increasing availability of devices at an affordable price points offered by a number of local and Chinese phone manufacturers.

In 2015, about 42 per cent of all phones imported in the country were smartphones.

"The large-scale offered by some of these markets has enabled 4G chip manufacturers to produce components at a much lower rate, thereby driving costs of 4G smartphones sharply lower," it added.

The report further said sharp reduction in 4G device prices across the Asia-Pacific region, coupled with the impending entry of Reliance Jio Infocomm has made the Indian telecom companies take notice of the rapidly evolving 4G device ecosystem