The move comes after recent gang rapes that have outraged the country and led to nationwide protests calling for tougher rape laws.
Being developed by the Center for Development of Advanced Computing, the watch can be used to alert authorities and family members if the wearer feels she is in danger, the BBC reported Wednesday.
The Global Positioning System will pinpoint the wearer's location when a button is pushed and send an alert to the nearest police station or chosen relatives, while a built-in camera can record a half hour of video, government officials said.
The government has held talks with state-run telecom equipment maker ITI Ltd. about manufacturing the watch, which it said could be ready by mid-year at a cost of between $20 and $50.
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