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This doesn't seem very competitive: it's priced at ₹4,199 (€38,08) on HMDs store.

On Amazon France, you can buy an "Energizer U506S" for €40.19 with free shipping. And that one has:

CPU: 1.5Ghz 4-core (MT6739 from 2017)

RAM: 2GB

Flash: 32GB

(and has card slot, dual sim)

And it runs Android 13 Go edition (probably not well, but enough to run Whatsapp and such).

So this device is facing some competition at that price point. Probably in India you can get an android device with higher spec at that €40 price point than you can in Europe.

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Those android phones will have a abysmal performance. I don’t know this device but it’s perfectly possible that a feature phone like this will provide good performance for its limited feature set on much lower specs.
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In theory, yes, a dedicated development team should be able to write a usable feature phone OS today, considering we had blazing fast feature phones in 2013 at even lower spec playing music seamlessly while browsing the web.

In practice this phone's YouTube reviews show it's running dog slow while lacking basic features, just like pretty much any other recently released feature phones at its price point.

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But not everyone are thoughtless and uncritically think "biggerer number is betterer". I think a strong selling point of these phones is that they come with very little of the clutter and weight that Android has. A less complex relation to one's phone gives some peace of mind.
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