Apple Likely to Set up iPhone Manufacturing Plant in Bengaluru

Apple CEO Tim Cook at the Taj Mahal hotel in Mumbai. (Photo: AP)

Apple plans to make its iPhones in Bengaluru, said Karnataka's Minister of State for IT Priyank Kharge on Thursday.

"An Apple team discussed with us its proposal to set up a plant in Bengaluru to make iPhones for the Indian and global markets," said Kharge in a statement.

An Apple team, led by iPhone Operations Vice-President Priya Balasubramaniam, Government Affairs Head Ali Khanafer, iPhone Operations Director Dheeraj Chugh and Country Counsel Priyesh Povanna discussed the proposals with the state officials in the presence of the minister.

We welcome Apple’s proposal to commence initial manufacturing operations in Karnataka. Its intentions to make iPhones in Bengaluru will foster the cutting-edge technology ecosystem and supply chain development in the state, which are critical for India to compete globally.

Priyank Kharge, Minister of State for IT, Karnataka

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"Apple's decision to make iPhones in Bengaluru has enhanced the city's reputation as the most preferred destination for foreign investment and validation of our policies to foster manufacturing, innovation and investments in the state," he said.

The Silicon Valley-based global firm has been eyeing India for a greater pie of its growing smartphones market, in which it sold 2.5 million iPhones as against a whopping 29 million by its Korean rival Samsung.

Apple ships iPhones to India from Foxconn Technology firm in China and sells them through distributors and retailers, besides iStore and Imagine stores.

Though the central government has told Apple that it would have to source 30 percent of its components from Indian suppliers, Apple is seeking a 15-year tax holiday on import of components and equipment.

With many states wooing Apple for its Indian plant in their cities, the iPhone maker has been exploring the best deal, including tax reliefs and exemptions from local sourcing.