The world's top mobile-phone maker shipped 60 million handsets from its factory near the southern Indian city of Chennai in the 18 months up to August. Chief executive Olli-Pekka Kallasvuo expects demand to remain strong as India's user base surges.

"India has quickly become one of the largest markets," he told reporters in New Delhi, adding he expects demand will not be limited to cheaper phones. "India is not a low-end market. It is a very versatile market in all price points, in all segments," he said.

Kallasvuo is on a three-day visit to India to meet government officials, clients and component suppliers.

Globally, Nokia sold 100.8 million phones in April-June quarter and, according to research firm Gartner, had a market share of 36.9 percent.

The Finnish firm reaffirmed that Nokia Siemens Networks, its joint venture with Siemens, would invest $100m (£50m) in India over the next three years.

Nokia had earlier said it expected India to become its number-two market by volume by 2010, if not sooner.

Nokia has set up a design studio in India, the first in a series of global satellite studios to develop ideas for emerging markets.

Seven global component makers have invested $500m in the Nokia Telecom Park near Chennai and are likely to employ more than 30,000 people when fully operational, Nokia has said.

Nokia employs 9,000 people in India — up from 450 in 2004 — and will continue to invest in India, Kallasvuo said, adding that production can be enhanced as demand grows.

India had 185 million mobile customers at the end of July, with more than six million new customers signing every month, lured by call rates as low as one US cent a minute.