BlackBerry users in India are celebrating after its makers got an extension of 60 days from the Indian Government to set up their servers in the country.

An official spokesman said that BlackBerry maker Research in Motion has come up with an interim solution to prevent India from shutting down its Blackberry services, which would affect 1 million smartphone users.

The Canadian company has decided to give India access to encrypted smartphone. The decision comes after weeks of discussions.

The Canada based wireless giant, which has more than a million BlackBerry subscribers, in the world's second fastest growing economy.

Blackberry sellers and customers in Bangalore, capital city of India's southern state of Karnataka, said they were happy with the extension, as it has again boosted the sale of the phone.

A customer said: "I think it's a nice decision from the Government that they have extended the... period and it's a nice phone."