India proposed extending tax exemptions until March 31, 2041, for foreign companies supplying machinery to local contract manufacturers. This policy shift supports Apple’s strategy to diversify iPhone production away from China. The proposal aims to provide long-term regulatory certainty for global electronics firms.
The relief prevents foreign companies from being taxed on Indian profits for owning high-end machinery used by local partners. An initial exemption starting February 2026 was previously scheduled to expire in 2031.
The 2041 extension also covers income from storing and supplying components for mobile phones and laptops within customs-bonded zones. India intends for these measures to strengthen its position as a global manufacturing hub.