India proposes extending tax breaks for contract manufacturing until 2041, a win for Apple

Published Aug 3, 09:20 AM UTC

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.