Apple Inc. is reportedly in talks with the Indian government to start manufacturing its products in the country. Apple products are currently sold in the country through a network of Indian-owned distribution companies and resellers. To manufacture iPhones, iPads or Macs locally in India, Apple is looking to emulate its China model.

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According to the Wall Street Journal, the technology giant has sent a letter to the Indian federal government outlining its plans to manufacture its products and open retail stores in the world's second-largest mobile phone market, while asking for financial incentives, two senior government officials said.

Prime Minister Narendra Modi created the "Make in India" initiative two years ago to boost technology manufacturing in the country. In June 2016, the Indian government loosened foreign-direct investment restrictions on several sectors, saying foreign-owned single-brand retailers such as Apple could open stores in the country provided they purchase at least thirty percent of their manufacturing materials from Indian vendors for at least three years. Such a restriction on Apple could prove a challenge since there are not many high-end phone-part suppliers in India.

Currently, iPhones account for less than two percent of Indian smartphones sales. However, Taiwan's Hon Hai Precision Industry Co Ltd (Foxconn), which makes Apple devices such as iPhones and iPads, has a manufacturing facility in southern India.

For years, Apple's massive product sales in China fueled the company's expansion, but now its growth in the country is slowing. In the quarter that ended Sept 24, Apple reported its first annual revenue decline in 15 years amid lukewarm iPhone sales. But its revenue has been rising in India, Tim Cook said at the time, adding that "we still believe we're just kind of scratching the surface there."