On Wednesday, Tamil Nadu Chief Minister Edappadi K Palaniswami hinted at the possibility of Foxconn making iPhones in its plant in the state.
Apple already has a manufacturing unit in India through Wistron in Bengaluru, but it only makes low-priced iPhone SE and 6S models.
Apple's cheaper iPhone models (SE and 6S) are already made in India, but this is the first time newer models, like the X family, will be produced there.
The investment could create up to 25,000 jobs, he added.
The U.S. and China are at odds over trade and there has been some suggestion that if a full-blown trade war between the countries erupts, tariffs on iPhones could drive Apple's prices up significantly. A third source confirmed that Hon Hai plans to assemble iPhones in India.
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The Hindu newspaper first reported on December 24 that the Foxconn plant would begin manufacturing various models of the iPhone.
This is a substantial 33 percent jump in the number of Android users who switched to iOS after the iPhone 8 and iPhone 8 Plus were launched a year ago, and a whopping 45 percent increase when compared to Android switchers in the month after the launch of iPhone X. However, according to a report by Consumer Intelligence Research Partners, this year's most affordable iPhone variant - iPhone Xr - has lured more Android users to upgrade to iPhone than last year.
Apple did not immediately respond to a Fortune request for comment on the report.
Still, it could potentially get Hon Hai to make the older iPhone X version in India in a bid to get a bigger share of the world's fastest-growing major mobile phone market.
Moreover, it is also not clear if any iPhone assembly is being shifted to existing Foxconn facilities in China or somewhere else. It is also unclear whether the production will be confined to assembly or include any component production in India.