Proposal aims to secure Apple’s expansion in India by exempting foreign firms from taxes on machinery supplied to local manufacturers.
India has proposed extending tax exemptions for foreign companies supplying machinery to contract manufacturers until March 31, 2041. The move targets Apple, which has pushed for changes to avoid potential taxation on iPhone profits under Indian law.
The initial exemption, introduced in February, was set to expire in 2031. Apple had lobbied for clarity, fearing its equipment ownership could be deemed a ‘business connection’ and trigger tax liabilities. India is projected to produce 26% of global iPhones by 2026, up from 6% four years prior.
The draft bill, requiring parliamentary approval, covers mobile phones, tablets, laptops, and wearable devices. The extension aligns with India’s push to diversify manufacturing away from China.