Proposal aims to secure Apple’s supply chain expansion in India, targeting 26% of global iPhone production by 2026.
India has proposed extending tax exemptions for foreign firms supplying machinery to contract manufacturers until March 31, 2041. The move follows lobbying by Apple, which seeks to avoid taxation on equipment ownership under Indian law, unlike in China.
The initial exemption, introduced in February, was set to expire in 2031. The extension covers mobile phones, tablets, laptops, and wearable devices, pending parliamentary approval. India’s share of global iPhone production is projected to rise to 26% by 2026, up from 6% four years ago.
The proposal aligns with Apple’s strategy to diversify manufacturing away from China. The tax break also applies to component storage, further incentivizing foreign investment in India’s electronics sector.