India has launched what it calls the "computer for the masses," a tablet that costs only $35 and designed so students can afford it.

The tablet, which is subsidized for students for $35 and will later be available in retail stores for $60, is manufactured by Canada-based DataWind. The Indian government has already bought 100,000 of the tablets called the "Aakash" or Sky in Hindi at $46. The initial 100,000 devices will be distributed to students for free.

"The rich have access to the digital world, the poor and ordinary have been excluded. Aakash will end that digital divide," Telecoms and Education Minister Kapil Sibal said.

The computer tablet is Indian-made and has Wi-Fi connectivity, multimedia player, seven-inch touchscreen and 180 minutes of battery power. The Aakash runs on an Android 2.2 operating system and has 2Gb storage and 2 USB ports.

"Our goal was to break the price barrier for computing and Internet access," DataWind CEO Suneet Singh Tuli said. "We've created a product that will finally bring affordable computing and Internet access to the masses."

"It ($35) is a viable number, on our way to $10 also. Maybe not today but in time. That's the goal," he added.

Commercial manufacturers are hoping the low price of the tablet will entice Indian customers to buy the Aakash despite the limited 256Mb memory. Apple's popular iPad tablet costs a minimum of $600 in India.

The Indian government is also hoping the cheap tablet will also improve the literacy rate in the country. India has a 61 percent literacy rate that lags behind other developing nations.

"When these devices are actually used by students across India, we will then get valuable feedback," said Human Resource Development Minister Kapil Sibal.

"This is the beginning of a journey," he said, adding that there will be more Aakash devices that will be available to students soon.