I am looking for a new phone.
Cheers C21 has an internal memory of 512 mb which is expandable upto 32 GB. C21 is a very good budget phone priced at under INR 1700. The phone comes with a 3.5 inch screen with a 2 mp primary camera and 1.3 mp front camera. It also comes with Wi-Fi 802.11 b/g/n.Its other features include 3.5 mm headjack, FM radio, USB and Bluetooth connectivity. It comes with a basic Android v2.3 ( Ginger Bread ). You can also buy a BQ S37 with a better processor and Android 4.2 just by spending an extra 500 bucks.
Know more about the model here: http://mobiles.maxabout.com/cheers/c-21