Apple will start manufacturing iPhone SE models in Bengaluru, according to a report in ET. The report said that Apple’s Taiwanese manufacturing partner Wistron Corp will set up a plant in Bengaluru to assembling iPhones.

The report says that Apple is trying to increase its presence in India, which is world’s fastest growing market. Moreover, smart phone sale is slowing down in China, the other major market in Asia.

Apple is in talks with the government regarding issues such as tax concessions.

As per Reuters report, the initial manufacturing of the iPhone SE model was not contingent on those concessions.

Apple shipped 2.5 million iPhones to India last year, with a third coming in the December quarter, according to market researcher Counterpoint. It ranked 10th in India's smartphone market but led the premium segment with a 62 percent market share.