India extends tax breaks for contract manufacturing, boosting Apple's expansion
India proposed extending tax exemptions until 2041 for foreign companies supplying machinery to contract manufacturers, a major win for Apple after lobbying. The move supports Apple's diversification from China, with India expected to produce 26% of iPhones globally by 2026. The draft bill also exempts income from storing electronic components in customs-bonded areas, eases data center tax rules, and offers a 15-year tax break for foreign diamond traders.
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India proposes extending tax breaks for contract manufacturing, boosting Apple
India has proposed extending tax exemptions until 2041 for foreign companies that provide machinery to contract manufacturers, a major win for Apple which had lobbied for such changes. Apple feared that Indian tax laws could treat ownership of machinery supplied to contract manufacturers as a 'business connection', exposing its iPhone profits to tax, unlike in China. The draft bill also exempts foreign companies' income from storing and providing parts for electronics manufacturing in customs-bonded areas until 2041, making such facilities attractive for exports. Additionally, India has eased tax exemptions for foreign companies using data centers, allowing leasing instead of ownership. India is a key market for Apple as it diversifies iPhone manufacturing beyond China, with Counterpoint Research estimating India will produce 26% of the world's iPhones in 2026, up from 6% four years ago.
India proposes extending tax breaks for contract manufacturing in a boost for Apple
India has proposed extending tax exemptions until 2041 for foreign companies that provide machinery to contract manufacturers, handing a major win to Apple which had lobbied for such changes. Apple had feared that Indian tax laws could treat ownership of machinery supplied to its contract manufacturers as a 'business connection', exposing its iPhone profits to tax. The extended exemption will apply to manufacturers of mobile phones, tablets, laptops, hearing and wearable electronic devices. India has also exempted from tax foreign companies' income from storing and providing parts used to manufacture such electronics components until 2041. Additionally, India has proposed making it easier for foreign companies using data center services to access tax exemptions, including allowing data centers to be leased rather than owned by Indian partners. India is a key market for Apple as it diversifies iPhone manufacturing beyond China, and is set to make 26% of the world's iPhones in 2026.
India proposes extending tax breaks for contract manufacturing in a boost for Apple
India has proposed extending tax exemptions until 2041 for foreign companies that provide machinery to contract manufacturers, a major win for Apple which had lobbied for the change. The move supports Apple's expansion in India, which is set to produce 26% of the world's iPhones in 2026, up from 6% four years ago. The draft bill extends tax breaks originally valid until 2031, covering manufacturers of mobile phones, tablets, laptops, hearing devices, and wearables. It also exempts foreign companies' income from storing and providing parts to contract manufacturers in customs-bonded areas until 2041, aimed at mitigating supply chain disruptions. Additionally, India proposed easing rules for foreign companies using data center services, allowing leasing instead of ownership to lower capital requirements. A separate 15-year tax exemption for foreign diamond miners and traders selling rough diamonds through designated trading zones was also proposed.
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India proposes extending tax breaks for contract manufacturing in a boost for Apple
India has proposed extending tax exemptions until 2041 for foreign companies that provide machinery to contract manufacturers, a major win for Apple which had lobbied for the change. The move supports Apple's expansion in India as it diversifies iPhone production beyond China; India is expected to produce 26% of the world's iPhones in 2026, up from 6% four years ago. The draft bill also exempts foreign companies' income from storing and providing parts for electronics manufacturing in customs-bonded areas until 2041, aiding supply chain resilience. Additionally, India proposed easing tax exemptions for foreign companies using data center services, allowing leasing instead of ownership to lower capital requirements. A separate 15-year tax exemption for foreign diamond miners and traders selling rough diamonds in designated zones was also proposed.
India proposes extending tax breaks for contract manufacturing in a boost for Apple
India has proposed extending tax exemptions until 2041 for foreign companies that provide machinery to contract manufacturers, a major win for Apple which had lobbied for the change. The draft bill, seen by Reuters, extends a previous exemption valid only until 2031. Apple feared Indian tax laws could treat machinery ownership as a 'business connection', exposing iPhone profits to tax. The extended exemption applies to manufacturers of mobile phones, tablets, laptops, hearing and wearable devices. India also exempted tax on income from storing and providing parts to contract manufacturers in customs-bonded areas until 2041, making such facilities attractive for exports. Separately, India proposed making it easier for foreign companies using data center services to access tax exemptions, and a 15-year tax exemption for foreign diamond miners and traders selling rough diamonds through designated zones. India is set to produce 26% of the world's iPhones in 2026, up from 6% four years ago.
India proposes extending tax breaks for contract manufacturing in a boost for Apple
India has proposed extending tax exemptions until 2041 for foreign companies that provide machinery to contract manufacturers, a major win for Apple which had lobbied for the change. The move supports Apple's expansion in India, which is set to produce 26% of the world's iPhones in 2026, up from 6% four years ago. The draft bill also exempts foreign companies from tax on income from storing and providing electronic components to contract manufacturers in customs-bonded areas until 2041, making such facilities attractive for exports. Additionally, India has proposed easing rules for foreign companies using data center services, allowing leasing instead of ownership to lower capital requirements. The bill also includes a 15-year tax exemption for foreign diamond miners and traders selling rough diamonds through designated trading zones.