M-tech Mobile on Tuesday introduced two new feature phones called "Raga" and "V10" for Rs 1,250 and Rs 1,199 respectively.
The move will enable the government to roll out panic button facility on mobile phones, aimed at helping women in distress.
With 27% market share (by shipment), Reliance JioPhone has become the leading feature phone brand in the country in the Q4 last year, a report said.
Vodafone has joined hands with iTel to offer a free talktime scheme to new customers of the latter's feature phones.
The pre-booking of JioPhone will start for Rs 500 across its retail stores, the website and Jio App from 5 pm on Thursday.
Elari has launched NanoPhone C which, it claims, is the world's smallest GSM phone.
Intex has plans to launch 4G feature phone for Rs 1,999 by end of this month.
Only 17 per cent of the Indian population owned a smartphone in early 2016, Chakravorti said.
Industry analysts have given the thumbs up to the move, saying this will bring a new era of innovation for the feature phone market in the country.
With an eye on 2G mobile users, Reliance Industries is working on a strategy to sell 200 million 4G feature phones -- likely to be priced Rs 1,000- 1,500 -- in two years.