The best thing about the Android ecosystem is the choice it offers, not just in terms of applications, but also in terms of hardware and feature sets that you get at each price point.
So in case you want a large display but are not very keen on 3G or a large camera, do get options galore. Here is a list of ten phones available in the market that offers a 4 inch or larger display and are at the very entry level.
Byond B54 (Rs 4,490)
Byond B54 is one of the cheapest Android phones in the market, but gets a large 4 inch display with healthy WVGA (480 x 800 pixel) resolution. It is based on Android Gingerbread (v2.3.6) operating system and has a 3 Megapixel rear camera and 1.3 megapixel front camera.
You also get a 1 GHz processor with 256 MB RAM, 1,500 mAh battery, FM radio and dual SIM support. The Byond B54 features 4 GB of pre-loaded content and has 32 GB of external memory support. For connectivity, you have WiFi and Bluetooth but no 3G or GPS. You can read a review of the phone here.
Karbonn Smart A2 (Rs 4,800)
Karbonn Smart A2 is based on Android 2.3 and comes with a large 4 inch display with WVGA (800 x 480 pixel resolution) and a 1 GHz processor. The phone like others in the ultra low cost category misses out on 3G and GPS connectivity.
Also, it has only 256 MB RAM, but it does have a Proximity Sensor and a large 1750 mAh battery. The phone has a 3 megapixel camera at the back and a VGA camera in the front. For connectivity, the Karbonn Smart A2 comes with WiFi, Bluetooth and Edge.
Micromax Smarty A65 (Rs 4,999)
The Smarty A65 has a large 4.3 inch display, which supports a healthy 800 x 480 pixel resolution. The dual SIM phone is based on Android 2.3 operating system and has 512 MB RAM, which is twice of what most phones in this and lower price bands offer. Besides, it has a 1 GHz processor.
The Smarty A65 also offers a 2 megapixel camera with a flash at the back and a VGA camera in front. The Micromax comes packed with a 1350 mAh battery, which as per the company, offers five hours of talktime and 205 hours on standby.
However, like most other low cost Android phones, this one too misses out on 3G connectivity, but it does offer Edge, WiFi and Bluetooth as connectivity options. The phone is available for Rs 4,999, which makes it the largest in the category of really low cost Android phones.
Micromax A89 Ninja (Rs 6,000)
The dual SIM Micromax A89 Ninja comes with a 1 GHz dual core MediaTek MT6577 processor accompanied by 512 MB of RAM. It sports a 4 inch screen with WVGA display.
The smartphone comes with 2 GB of internal storage, which can be expanded to 32 GB through a micro SD card. It runs on Android 4.0 (Ice Cream Sandwich) operating system.
The device packs a 1450 mAh battery and has a 3 megapixel rear camera but no flash. Apart from that it features 3G, WiFi, Bluetooth and USB connectivity. The phone also comes with GPS support. It is feature packed and yet costs just Rs 6,000.
Zen Ultraphone U4 (Rs 6,499)
Zen Mobile Ultraphone U4 runs on a 1 GHz processor and is based on Android 2.3 Gingerbread operating system. Ultraphone U4 features a 4.3 inch WVGA (800 x 480 pixel) capacitive touchscreen, a 3.2 megapixel camera with flash, a 1.3 megapixel front camera, GPRS/Edge, WiFi and Bluetooth, but it does not have 3G connectivity. 
The phone allows expandable memory up to 32 GB. It uses a 1500 mAh battery and is priced at Rs 6,499.
Micromax A68 Smarty (Rs 6,500)
This is the only ultra low budget phone that comes with an IPS panel display. It has a 4 inch screen with 800 x 480 pixel resolution, a 1 GHz MediaTek MT6515 processor, 512 MB RAM, and runs on Android 4.0.4 operating system.
This dual SIM phone also has a 5 megapixel camera and a fairly large 1600 mAh battery. However, like other phones in the category this one too is a 2G only phone and there is no mention of GPS. The Micromax Smarty A68 does not have a proximity sensor or front facing camera either.
The phone, however, does offer Edge, WiFi and Bluetooth connectivity. For storage there is 4 GB of Internal Memory of which 2 GB is available for users and the device has a memory slot that can take up to 32 GB. If a nice screen is the big thing for you, this phone is a good option and should offer decent performance too.
Spice Stellar Nhance Mi435 (Rs 7,199)
Spice Stellar Nhance is a dual SIM phone with a 4 inch capacitive touch display with 800 x 480 pixel Resolution and Android 4.0 Ice Cream Sandwich operating system with Spice Stellar Nhance Mi435. It has a 1 GHz processor and 512 MB RAM.
The Spice Stellar Nhance Mi435 boasts an 8 megapixel main camera with fixed focus, a CMOS sensor, 5x digital zoom, and video recording. Besides, it has a 1.3 megapixel front camera for video chatting.
On the connectivity front, the Spice Stellar Nhance Mi435 has GPRS, 3G, Bluetooth, WiFi, and a Micro USB port. The Spice smartphone has 2 GB user storage, a music player, FM radio, A-GPS, a 1500 mAh battery, and 32 GB expandable memory.
The phone is fully loaded and therefore is costlier at Rs 7,199.
Videocon A30 (Rs 7,500)
Dual SIM Videocon A30 features a 1 GHz dual core Qualcomm processor and runs on Android 4.0 Ice Cream Sandwich operating system. It has a 4.0 inch capacitive touchscreen display, a 1500 mAh battery, FM radio with recording, memory expandable up to 32 GB, Bluetooth, and GPRS-Edge-WCDMA capabilities along with other features like WiFi, GPS and A-GPS.
It has a 5 megapixel rear camera and a front facing VGA camera. The phone has 512 MB of RAM and 4 GB of internal memory. Given the specs it is justifiably priced at Rs 7,500. You can read the review of the phone here.
Lava Iris N400 (Rs 6,499)
Lava Iris N400 is a dual SIM phone that runs on Android Ice Cream Sandwich OS and runs on a 1 GHz processor coupled with 512 MB RAM. There is a 4 inch WVGA resolution display, a 5 megapixel camera on the back of the body, and a VGA camera on the front for video chats and self portraits. 
The device offers Bluetooth and USB connectivity for file transfer; there is 3G, Edge, GPRS, and WiFi for internet connectivity. Other features include a 1500 mAh battery, FM radio and 32 GB expandable memory. The phone is priced at Rs 6,499.
Zopo ZP 100 Pilot (Rs 7,599)
Zopo is a new brand in India, but is very well priced as Indian feature rich phones go. Zopo Pilot ZP100 runs on the latest MTK6575 chip with Cortex A9 1 GHz CPU coupled with 512 MB RAM. The phone also has a 4 GB ROM.
The Android 4.0 based phone comes with a 4.3 inch sharp ASV (a technology from Sharp) display with wide angle visibility and qHD (960 x 540 pixel) resolution.
It gets a 5 megapixel camera with CMOS sensor and auto focus, and supports 720p HD video. The phone gets a fairly large 1650 mAh battery. The dual SIM device offers 3G, WiFi and Bluetooth connectivity, a full assortment of Sensors common on Android phones.
All in all the phone comes with a full list of features and has a much better display and camera compared to all the other phones in this list. It is selling for Rs 6,999 + Rs 600 (shipping,) and is available only through the Zopo Mobiles India site www.zopomobiles.in.