"We will very much like Apple to come and have a base in India," Prasad said.

Apple has sent a list of demands to the Indian government, seeking tax concessions and several other policy exemptions, as necessary pre-requisites before it starts production of its iPhones in India.

Prasad also said a government panel headed by the cabinet secretary would now clear investment proposals in the electronic sector above $1 billion, instead of them going through multiple government departments.

Prasad's comments came after the federal cabinet revamped a subsidy program for electronic manufacturing, tightening some of its provisions following objections from the finance ministry.

He announced a cap of $1.5 billion on the amount of subsidy the government provided under the Modified Special Incentive Package Scheme (M-SIPS) designed to boost electronics manufacturing.

The finance ministry had raised concerns about the scheme because of a lack of clarity about the subsidy payout, delaying a slew of investment proposals.

Apple has offered to manufacture iPhones in the country both for the domestic market as well as exports, in a potential boost for Prime Minister Narendra Modi's "Make in India" program to expand a domestic industrial base and create millions of jobs.

"We want to make India a big hub of electronic manufacturing," Prasad said.