As people in India become wealthier so more can afford mobile phones

Nokia will work on new ideas for India's fast-growing mobile phone users together with students from the Srishti School of Art, Design and Technology.

The partnership is the first in a series planned to tap into the potential of countries which are seen as design hot-spots.

The Nokia handsets created in Bangalore will also be sold worldwide.

"India is a dynamic and inspiring place for designers with its diverse mix of cultures, traditions and colour," said Alastair Curtis, Nokia's chief designer.

"The new satellite studio will help us further develop our understanding of this vibrant country and to work more closely with its extremely talented designers."

Good indicator

A Nokia spokesman said India was a good indicator of other emerging markets with rapidly expanding economies, as demand for mobile phones spanned the range from cheap no-frills handsets to high-end multimedia devices.

Nokia hopes that by embracing the skills of budding and established designers in India, it will inspire new trends across markets.

The Finnish firm - the world's biggest phone maker - is expected to set up its next design partnership in the Brazilian city of Rio de Janeiro later this year.