The company will manufacture at a contract manufacturer’s plant in the South Indian technology hub of Bengaluru, industry sources said. Apple’s Taiwanese manufacturing partner Wistron Corpis is setting up a plant in Bengaluru to focus solely on assembling iPhones, a separate source told Reuters earlier this month. Apple had also asked for tax concessions, including lower import and manufacturing duties, and certain policy exemptions from the Government for setting up a manufacturing unit here in the country. SEE ALSO: Mobile internet usage was up by 29% over previous quarter: Report According to IDC, Apple’s move to start manufacturing in India comes at a time when its sales in China, the company’s second-biggest market, are slowing. Meanwhile, India’s smartphone market is rapidly expanding and is likely to overtake the US to become the second-largest in the world. Currently, most of Apple’s products are assembled in China, primarily by Foxconn Technology Group. The company is also planning to set up 100 small stores under the franchise mode in the pilot phase. According to an ET report, the tech giant is planning a six-fold expansion of such outlets by next year. According to market researcher Counterpoint report, Apple has shipped 2.5 million iPhones to India last year, with a third coming in the December quarter. Apple accounts for less than 2 percent of shipments in India, where an estimated 750 million smartphones will be sold by 2020. The report also says that the company ranked 10th in India in the fourth quarter.