India to extend tax break for electronics makers to 2041

The Indian government has proposed extending a crucial tax exemption for foreign electronics manufacturers until 2041, a move that directly benefits Apple as it significantly expands iPhone production in the country. The draft legislation, which must still be approved by both houses of Parliament, would provide long-term tax certainty for companies that supply high-end manufacturing equipment to their contract partners in India.

The proposed amendment extends an existing incentive first introduced in February 2026, which was set to expire in 2031. Apple had actively lobbied for the original rule change, arguing that under previous interpretations of Indian tax law, its ownership of iPhone assembly machinery provided to local contractors could be treated as a "business connection." This classification could have exposed a portion of Apple's global iPhone profits to taxation in India. The extended exemption, now proposed to run until March 31, 2041, would apply to foreign companies involved in manufacturing mobile phones, tablets, laptops, and wearable electronic devices.

In addition to the machinery exemption, the draft bill also proposes extending tax relief until 2041 for...