Redmond, Washington-based Microsoft plans to ship the low cost version of its PC operating system – branded as Windows XP Starter Edition – to help penetrate developing PC markets more deeply.

Microsoft has already announced similar plans for the Russian, Thai, Malaysian, and Indonesian markets.

Microsoft says XP Starter Edition is aimed at first time PC users and will be significantly cheaper than the full version of the operating system. However it declined to give pricing specifics at this stage.

A Hindi language interface and help menu system will be part of Starter Edition. If uptake is successful Microsoft says it will consider offering the software in 14 other Indian dialects as well.

The software has been formally endorsed by the Indian government as well as influential IT bodies in the country – such as New Delhi-based National Association of Software and Service Companies.

Microsoft says several local PC manufacturers are already planning to bundle the operating system into their newer machines.

According to industry figures, Indian PC sales rose nearly 40% this quarter – driven by aggressive pricing by vendors.

Ultimately, rolling out cheaper localized versions of its Windows operating systems can be seen as part of Microsoft’s strategy to ward off increased competition from open source software, like Red Hat’s Linux, that is gaining momentum in Asia.