(Please excuse that I only have information about Nokia phones - you can no doubt find very suitable phones from other manufacturers too, but I don't know enough about them to help).
From
Nokia India's phone model page you can find a list of phone models that are available in India. The following phones from that page's 'current models' support MIDP 1.0: Nokia 7650, 7600, 7250i, 7210, 7200, 6820, 6800, 6610, 6220, 6100, 5100, 3660, 3650, 3586, 3585, 3530, 3300, 3200, 3120, 3100. And the following support MIDP 2.0: Nokia 6600, 6230. From
Forum Nokia's device specifications page you can find out which Java APIs each model supports.
Some models I'll call your attention to:
Nokia 3530 - probably the cheapest Nokia Java MIDP 1.0 phone for you, 96x65 colour screen
Nokia 3100/
3120 - probably the cheapest 'Series 40' phones: MIDP 1.0 and 128x128 colour screen
Nokia 6600 - supports 'Series 60', Symbian OS, MIDP 2.0 & JSR-82 Bluetooth API
Nokia 6230 - supports MIDP 2.0 & JSR-82 Bluetooth API, physically smaller than 6600