Thanks for all the help
Firstly thanks for all the help.
This is how i managed to increase the internal memory
( My phone did not format and i did not lose any files or even contacts )
Use the files from the link here ( http://forum.xda-developers.com/show...2742702&page=2
1. I opened the flash tool.
2. loaded the scatter file provided.
3. Unchecked everything except the 2 ebr files.
4. Loaded the 2 EBR files provided in the folder XOLO_Q3000_S003_15102013.
5. Clicked download
6. Connected the phone without the battery.
7. It was done in matter of seconds.
(I did not have to root my phone or do any other separate process)
It is Important to have proper drivers which are also provided in the above thread.
After rebooting phone said that format sd card or something, i clicked yes.After another reboot when i checked, nothing was actually erased.
So i am pretty satisfied now that my phones internal memory is not always full.
Thanks again to all those who took interest and helped.