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Why

Can take billions of dollars

You really think that new Gen is so stupid that they won't be able to jailbreak the phone, if a company makes limitations on something people love breaking it, also their parents will either be people like us(tech savvy) hence we won't want to buy something like that for our children or the children will be the tech savvy ones and they'll just tell their parents that they don't want that phone. The idea might work for teir 3 India, but they are really price sensitive so it'll be hard to break through, and teir 1 and 2 India will just have problems stated above.

It's great idea

In Android there is already option like kids mode

Nah brother! 1.There are certain features pre Installed in phone which does the same work. 2. There are apps in playstore that does the same work 3. There will be trust issue because your smartphone brand is not recognized like Samsung,apple etc 4. People will buy smartphone for long term use, so as children turn 17 or above the phone would become useless, so people would not consider this.

It would not be a good idea as children would get addicted to screen at early age.

Phone comes in a showoff category . It's like a competition. Child over 11 will never use it as it will give him inferiority complex . But you can launch it for under 8 child . Usually parents give mobile so that the kid sit quietly.

Children aren't buying phone for using for a short term, people want to use it for long time , so once they turn 16 they can't just throw the one away. Phone is a long term investment for us Indians!

Most of the phones nowadays have parental control so..its not a big deal…But your idea is really gud. if You can add more things for interactive learning and purely focusing on improving a childs mindset then it will be really nice. (It’s just my opinion nothing much so sorry in advance if anything said was worng)

Here is my honest view on this: Most of them would want games and apps as their friends. As you mentioned "only" special apps and games, they most likely will ask their parents to buy smartphones from other brands.

Ye dekho mere mobile ma kya ha .....

I dont think thats a good idea because most of the kids nowadays (12-16 age ) have good and expensive phones and they dont want any restriction on their phones. So how would you takle this issue?

Just build a feature for it why different smartphone?