BENGALURU: The Government of Karnataka today said it welcomes Apple Inc . 's proposal to commence initial manufacturing operations in the city. However, reports quoting highly placed government sources had earlier said that the iconic iPhones would be manufactured in Bengaluru by Wistron , a Taiwanese OEM maker for Apple. "Wistron has plans for setting up iPhone manufacturing plant for domestic market in Peenya," they had said.Apple's decision on initial manufacturing in Bengaluru has further enhanced the city's reputation as the most preferred destination for foreign investment and further validation of State Government policies aimed at fostering manufacturing, innovation and investments in Karnataka, the release added.Local manufacturing is expected to help Apple price its phones more competitively in India as it currently attracts 12.5 per cent additional duty on imports.This would be Apple's second big project for Bengaluru. In May, Apple had announced setting up a design and development accelerator in the city to grow the iOS developer community.The announcement was made as part of the visit of Apple CEO Tim Cook to India.

Source: Economic Times February 02, 2017 13:56 UTC