Apple is planning to start manufacturing iPhones in India within next two months. Its Taiwanese contract manufacturer Wistron is likely to start making iPhone 6 and 6s models in the next four-to-six weeks at a plant in Peenya industrial area in Bangalore.

The company is expected to add budget iPhone SE model in its assembly line in another three months.

"Almost all preparations have been done for launching Apple's first phase project in Bangalore through Wistron," an official from the southern state of Karnataka told The Wall Street Journal.

"We appreciate the constructive and open dialogue we've had with government about further expanding our local operations," said a spokeswoman for Wistron.

Analysts believe manufacturing iPhones in India would likely help Apple expand its market in the country.

According to market research firm Counterpoint Research, smartphone shipments grew 18% in India in 2016, when compared to 3% globally. The mobile devices sold in India are usually less than $150 (£120).

Making the phones in India would allow Apple to lower prices by at least $100 as its import tariff bill comes down, said Faisal Kawoosa, an analyst at research firm CMR.

"We've been working hard to develop our operations in India," an Apple spokeswoman told the WSJ.

Apple is holding talks with New Delhi for its next level of production. The company plans to bring the components to India to assemble the devices and export finished smartphones, federal government official at the Trade Ministry, reports WSJ.

Apple is seeking a tax concession on import of components but the government officials have not yet, "accepted most of the demands of the iPhone manufacturer," Trade Minister Nirmala Sitharaman told lawmakers.

"Apple is closely working with [the] government to move forward with its India plans. We want Apple to manufacture in India. They are also very keen," an official who works closely with Prime Minister Narendra Modi said, "We will try to accommodate as much of their demands as possible, but they too appreciate and understand our limitations."