In this photo taken on April 27, 2012, prospective buyers check out the new iPad tablet computers at an Apple store in Bangalore, India. (PHOTO / AP)

Apple Inc is facing challenges as it tries to increase production in India, the Financial Times reported on Tuesday, citing people familiar with the iPhone maker's operations.

Apple has bet big on India since it began iPhone assembly in the country in 2017 through Wistron Corp and later Foxconn, in line with the Indian government's push for local manufacturing

At a casings factory in southern India run by conglomerate Tata Group, only about half of the components from the production line are in good enough shape to be sent to Apple's supplier Foxconn, FT reported, citing a person familiar with the matter.

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This 50 percent "yield" does not meet Apple's goal for zero defects, FT reported, adding that the company's process of expanding in India has been slow in part due to challenges in logistics, tariffs and infrastructure.

Apple and Tata Group did not immediately respond to a request for comment.

Apple has bet big on India since it began iPhone assembly in the country in 2017 through Wistron Corp and later Foxconn, in line with the Indian government's push for local manufacturing.

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Last month, India's trade minister said that Apple wants India to account for up to 25 percent of its production from about 5 - 7 percent currently.