Apple plans to start assembling the iPhone in Bangalore India by end April under a contract manufacturing arrangement with Taiwan's Wistron.
The move by the company comes even as it awaits approval from the federal government for some of its proposals for lowering the import duties on components and for creating an ecosystem of local manufacturers who can supply components for the smartphones.
The Karnataka state, of which Bangalore is the capital, has announced Apple's intentions to make the iPhone in the city.
Priyank Kharge, state minister for information technology, confirmed that the company had been cleared to make the phones in Bangalore and said it was a validation of the state's industry-friendly policies.
Apple has been planning to make its phones in India as well as set up its own retail stores in the country to address the booming local market, which is expected to see higher demand for Apple devices because of the rollout of 4G networks. iPhone sales were up over 50 percent in the country in fiscal 2016 over the previous year.
In the third quarter, Samsung Electronics, followed by Chinese and Indian brands like Lenovo and Micromax, led the Indian smartphone market, according to IDC estimates, largely because they have been able to deliver their products at various price points.