Archive · 3 Aug 2026
India Extends Tax Breaks for Apple‑Related Manufacturing to 2041
India wants to keep a special tax break for companies that give machines and parts to factories that make phones and other gadgets.
The break will last until 2041.
Apple, which makes iPhones in India, will benefit because it can keep its machines in India without extra taxes.
The rule also helps companies store parts in special warehouses.
It also lets companies use Indian data centres without owning them, making it easier to run their services.
The government hopes this will make India a bigger place for making electronics and help the country grow its economy.
India proposes extending tax exemptions for foreign companies supplying machinery and components to contract manufacturers until 2041.
The extension removes uncertainty about a “business connection” that could expose Apple’s profits to Indian taxes.
Apple’s iPhone production in India is expected to rise to 26% of global output by 2026.
The proposal also covers foreign companies storing and supplying components in customs‑bonded warehouses.
Additional tax relief is offered for foreign companies using Indian data centres, allowing leasing rather than ownership.
- Who
- Apple and other foreign electronics manufacturers
- What
- India proposes extending key tax exemptions for equipment and component supply to contract manufacturers
- When
- Until March 31, 2041
- Where
- India
- Why
- To reduce tax uncertainty, boost manufacturing, and attract global investment
- Extension deadline
- March 31, 2041
- Targeted entities
- Foreign companies supplying machinery and components to contract manufacturers
- Affected products
- Mobile phones, tablets, laptops, hearing devices, wearable electronics
- Component storage exemption
- Foreign companies storing/supplying components in customs‑bonded areas
- Data centre rule
- Foreign companies can lease Indian data centres, easing tax exposure
