Image Credit: Apple, Inc

“Apple’s decision on initial manufacturing in Bengaluru has further enhanced the reputation of Bengaluru as the most preferred destination for foreign investment and further validation of the state government policies aimed at fostering manufacturing, innovation and investments in Karnataka,” read the statement signed by Karnataka Information Technology Minister Priyank Kharge.

The global tech major opening a manufacturing plant in Bengaluru “will foster cutting-edge technology ecosystem and supply-chain development in the state, which are critical for India to compete globally,” the Karnataka government said, according to The Times of India. India will only be the third country to assemble iPhones.

Apple’s original component maker – Taiwan-based Wistron Corp – will manufacture its flagship smartphone in India. Wistron is believed to have narrowed down on Peenya, an IT hub of Bengaluru. In the first phase of its India operations – expected to begin between April and June – Apple will make phones for the Indian market, according to the Mint report. It currently sells its products in India through contracts with stores such as Imagine and the Reliance Digital-owned iStore.

The news comes after Apple executives presented their proposal to the Centre on January 25, seeking to begin manufacturing iPhones in India. The company had sought exemptions to the rule that makes it mandatory for companies to procure 30% of components from local sources, among other concessions.

The presentation was made by senior executives of the company, Priya Balasubramanian. It cited the country’s business friendly ecosystem for keenness to start local manufacturing. With sales tapering in the US and China, Apple is eyeing India—the fastest growing smartphone market in the world—and looking to set up a local manufacturing unit to cut costs. It, however, does not manufacture devices on its own and rather does it through contract manufacturers.