India's Reliance Industries has asked local suppliers to increase production capacity, aiming to make as many as 200 million cheap smartphones for the company over the next two years, US media reported Wednesday.

Reliance Industries is in talks with Indian manufacturers to make Android-powered smartphones for its Gonow platform at a price of about 4,000 rupees ($54), Bloomberg News reported, citing sources familiar with the matter. The phone will be sold with a low-cost wireless plan from Gonow.

Reliance Industries plans to sell 150 million to 200 million smartphones over the next two years, the report said. About 165 million smartphones were assembled in India in the year to the end of March, with a fifth costing about 7,000 rupees ($100), according to the Indian Association of Mobile Phones and Electronics.

In July, reliance industries formed an alliance with Google of the United States. Google announced it would invest $4.5 billion in gonow in exchange for a 7.7 percent stake. The two companies said the investment package includes a joint venture to develop an affordable entry-level smartphone. Reliance Industries is taking the lead in launching its low-cost smartphone program as the partnership is still subject to regulatory approval.

"The Gonow platform will have the opportunity to tap into the blue Ocean market for the more than 500 million People in India who do not have smartphones," said Neal Shah, head of research at The research firm Counter Pointe.

The Gonow platform holds a number of assets in Reliance Industries' digital businesses, including telecommunications company Gonow Communications. Gonow became The largest wireless carrier in India three years after it was founded. A June report by Sanford Bernstein of the United States predicted that Gonow could account for 48 percent of India's mobile subscriber market by 2025. CNN reported in July that Gonow has received about $20 billion in investment since April.