Is the Freedom 251 so cheap because of subsidies?

An Indian Smartphone manufacturer -- Ringing Bells--has launched the world's cheapest phone for just Rs 251. The company starts taking orders from today and will deliver the phones by end of June. Freedom 251 which runs on Android Lollypop has 1 GB RAM and an internal memory of 8 GB. It has a 3.2 mega pixel camera and a 4-inch HD display touch screen.