Foxconn will not act as the primary manufacturer for Apple. This decision concerns only the release of the iPhone, organized by the cupertinos in India.
As reported by trade publication DigiTimes, Apple does not intend to postpone the implementation of its plan to start production in India and changing the main supplier to the company Wistron. This will make the iPhone SE the iPhone 7 and iPhone 7 Plus are available for the local population.
In addition, Apple had the opportunity to reduce its dependence on Foxconn and Pegatron by the choice of an alternative supplier in India. Local laws do not allow to open retail stores in the country until at least 30% of the products will not be manufactured in India. Apple is the only company with the rights to run the stores without the presence of local production. But the resolution was issued with the condition that within 2-3 years, it still contributes to the release of the iPhone in India.
Production of the iPhone in India should start in April, but as previously reported, Apple has their requests to the Indian authorities in exchange for something that the partners will start producing in this country smartphones. It is not requirements and requests, so it is unclear why the government has to make concessions.
For example, Apple wants a tax holiday on import of components and equipment for a period of 15 years. The American Corporation wants the abolition of customs duties on new and used equipment, which will be imported into the country.
The government of India in the past did not give any concessions to other companies, which went to the local market. Currently Apple is only 2% of the smartphone market of India.