India has offered to allow Apple Inc., to import mobile handset components intended for use in local manufacturing tax free; but these concessions will be subject to the condition of increasing local value addition over a period of time.

Aruna Sundararajan, Secretary at the Ministry of Electronics and IT told Reuters, “We have offered them tax exemptions on those components which could not be manufactured in India.” She added that Apple will need to increase the local manufacturing component gradually in phases of 3, 5, 7, and 10 years as the local capacity builds up.

In mid-May, Apple‘s OEM partner, Wistron, started assembling the iPhone SE in Bangalore, India, in order to lower the price point and make it more affordable to Indian consumers.

Ravi Shankar Prasad, the federal minister for Electronics and IT said that Apple had approached the Indian government to expand Wistron’s facilities in Bangalore, and that government officials were in touch with Apple for expanding the facility and setting up new plants.