The elite Indian Institute of Technology and the Indian Institute of Science aims to make the computing prototype available to students from elementary schools to universities, in a bid to provide better education and the technical skills needed to boost India's economic growth.
Introduction of the Linux-based computing device was targeted for next year, with the first users expected to be college students.
"This is part of the national initiative to take forward inclusive education," Human Resource Development Minister Kapil Sibal said Thursday. "The solutions for tomorrow will emerge from India."
The $32 price for the laptop is expected to be reduced further to as low as $9 after being mass-produced, the report added.
The Linux-based laptop is targeted for launching next year with college students as its first users.