Apple Inc. is willing to start making iPhones in India, but it want a big helping hand from Narendra Modi's government first.
"We would like Apple to set up base in India", Ravi Shankar Prasad, minister for information technology said on wednesday.
Apple wants to boost business in India as the country of 1.3 billion becomes the fastest growing smartphone market and sales flatten in the U.S. and China. Chief Executive Officer Tim Crook visited the country for the first time in May as he sought government approval for Apple to open its own stores.India has insisted that Apple, like any single brand retailer, source 30 per cent of its component locally.
Apple and India's official have met several times amid a profit exchange of correspondence, but next week's meeting will be crucial.
India isn't the only country pressing Apple for local manufacturing. U.S. president elect Donald Trump has said he wants to see iPhone made in Apple's home market, part of a broader push to get companies to keep or create manufacturing jobs.
Prime Minister Modi wants companies to make products in the country as part of his "Make in India" policy, aimed at reaping the benefits that come from manufacturing facilities and jobs.
Despite its global success, Apple is a minor player in India, largely because its phones are too expensive for local customers. Apple holds about 2 per cent of the market in a country where about 5000 million smartphone are expected to be sold in next few years.Cook has said Apple is just "scratching the surface" in India.