Smartphone maker Apple is in ongoing discussions with the Indian government regarding a deferral to proposed 10% import duties on a widening range of phone parts, Reuters reports. Currently the duties apply to a handful of elements including batteries, but could be expanded further. Apple plans to increase local manufacturing to other models other than the iPhone SE, but won’t necessarily want to make more components there.

Panjiva data shows Apple’s Indian imports have increased by 9.3% in the three months to October 31 on a year earlier. In terms of products that’s been led by completed handsets outside the SE (68.8%) and its laptop/desktop systems (23.5%).

Chart segments imports by Apple’s Indian subsidiary by HS code. Source: Panjiva

It faces a similar challenge to other manufacturers in that the Indian government wants to promote component manufacturing as well as handset assembly in-country. It may therefore need to work with other parts importers including both its partners such as Flextronics (via its local subsidiary Rising Stars) which imported $834 million of phone components in the past quarter and competitors such as Samsung Electronics ($549 million).

CLICK CHART FOR LARGER VERSION. Chart segments Indian imports of telecoms related equipment by HS code and importer (HS 8517.70 represents mobile phone parts). Source: Panjiva