Where?
So, if you have a narrow function that the gadget is going to be used for, you're better of going full custom than programmable function.
How much inefficiency per unit in building small batches of a custom chip, as opposed to many units of a single design, would it take to overcome whatever gains you got when running the device?
More generally, I'll echo the concerns of everyone else here: we seem to be getting greener by using more-general-purpose computing, that necessitates less devices, and less frequent upgrading. Especially because we now see that once devices reach a certain level of power, we actually buy new ones far less often. (Many people now happily own 5-year-old desktops, not because they cannot afford more, but because they're too LAZY to buy a new one for the small marginal benefits... and laptops are headed slowly in that direction. Cell phones and tablets are still far from that transition.)
On the other hand... your observation about the 3% penetration in India, assuming it's factually true, does sound like SOME kind of an opportunity. Making things radically cheaper is always an important disruption (c.f. the original sense of "disruptive innovation", which doesn't just mean "we beat the competition"). And certainly if you can sell to 0.01% of Indian farmers (say 100k households?), that's a hell of a lot of units over which to amortize the high fixed cost of circuit design and tape-out. Although only if you really can come up with a single design that meets the needs of such a huge and probably diverse market. Sounds very hard.
Plus, of course, as many sages (e.g. pg) observe repeatedly, if it were obviously a good idea then your competition would already have done it, which means that IF it's ACTUALLY a good idea, the crowd of naysayers here (myself included) is a good sign for your project. ;)
In short, I'm really sceptical about your fundamental hypothesis, but good luck with figuring it out.
10 million PCs sell yearly in India in a population of 1 billion.
General purpose computer hardware is an investment in a toxic industry to enable the cheap and clean process of disposable software.
(+) Web browsing is extremely complex: We have video, audio, js, plugins (flash, java, silverlight), changing standards for html, css etc. Because of this, it's not very well suited for custom chips. For this reason, modern smartphones contain both custom chips for the "phone" functionaltiy and a flexible microprocessor for Angry Birds.
There might be other areas where a few custom chips might save a lot of resources in the long run, though.