The handset, which Lava said is India's first 4G-enabled "smart feature phone", is powered by 1.2 GHz quadcore processor, 512 MB RAM and 2.4-inch display screen. It has a VGA camera.
Apart from 4G, Lava 4G Connect M1 supports 2G voice calling and EDGE connectivity.
The device will be available across retail stores and multi-brand outlets across India in a few weeks' time.
"In its endeavour to make aspirational technologies available, Lava has introduced this smart feature phone which brings forth a fast 4G with VoLTE connectivity at an affordable price," it added.
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"The launch of this smart feature phone, we believe, will create possibilities for users as they will now be able to consume digital content and even do digital transactions," Lava International Head Product Gaurav Nigam said.
Furthermore, a sizeable segment of feature phone users in India who use their phone to only make calls will now be able to access the internet at affordable price, he added.
Brands like LYF (Reliance Jio), Samsung, Micromax and Intex have 4G smartphones in the Rs 3,500-4600 range.
According to research firm CMR, total mobile phone shipments in 2016 stood at 262 million units, of which smartphones accounted for 113 million (43 per cent) and the remaining 149 million were feature phones.