In an interview to Digit, Microsoft India President, Anant Maheswari, did not deny the existence of a Surface Phone but also did not reply in the affirmative. He also touched upon some points about the broader availability of Microsoft products and services in the Indian market.
https://www.notebookcheck.net/Microsoft-India-chief-keeps-the-possibilities-of-a-Surface-Phone-open.274752.0.html