We first saw India's cheap tablet last year, and now, a year later, the Aakash has started shipping to Indian students complete with the promised $35 price tag.
The specs have changed somewhat; most significantly, the original Linux OS has been replaced by Android 2.2 Froyo. The seven inch resistive touch screen has 800 x 480 resolution, driven by a 366-MHz co-processor with 256-MB of RAM and 32-GB of flash memory. That isn't exactly going to embarrass your iPad 2, but it should help millions of people to get online for the first time.
The $35 price includes an Indian government subsidy of around $15 per tablet, but the manufacturers hope to get the actual retail price down to $35 once volume production kicks in. While the basic version has only Wi-Fi connectivity, a retail version with a modem and SIM card is expected to follow for around $70.