India proposes extending tax breaks for contract manufacturing in a boost for Apple
The Indian government has proposed extending tax exemptions until 2041 for foreign companies that supply machinery to contract manufacturers. This move is expected to benefit Apple as it expands its manufacturing footprint in India.
Why it matters
This policy change is a significant incentive for global tech giants to shift supply chains to India, impacting the global electronics manufacturing landscape.
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, and is fast expanding in the market.
India has been a key market for Apple as it diversifies iPhone manufacturing beyond China, and the South Asian nation is set to make 26% of the world’s iPhones in 2026, up from 6% four years ago, according to Counterpoint Research.
According to a draft of the proposed tax amendments seen by Reuters , “to provide [tax] certainty” the government has extended tax breaks until March 31, 2041, to foreign companies that provide equipment to their contract manufacturers in India.
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