@zainmuhammed RP2040 is not a perfect MCU nor it was designed to become one. It's still an ARM Cortex MCU. You can see many other similarly or even lower priced offerings from other manufacturers. For example, look at ESP8266 and ESP32. They don't use ARM core and thus save a lot on IP royalties (Intellectual Property for Silicon designs) and come with even more features.
But since it's from the house of Raspberry Pi, everybody knows that RP2040 is going to reach everywhere like wildfire. That kind of volume projection allowed them to cut the cost in the early stage of release. Because, cost of producing something totally depends on the scale of manufacturing.
Since RPi is from UK they must have also been able to make a better deal with ARM, which is also from UK.