Its IPS display (IPS is display technology), where as VGA etc are display resolution.
Extract from Xolo site:
12.7cm (5) IPS display
Experience the beauty of clear picture on 12.7cm big (5) IPS display with XOLO Q1000 Opus. Rich picture quality, stable imagery and high response time on the brilliant big screen so that you don't miss out on any detail even when you are on the go.
Could had launched with better battery , better camera and better screen res .