India has proposed extending tax exemptions until 2041 for foreign companies that provide machinery to contract manufacturers, a move that benefits Apple as it expands iPhone production in the country. The draft bill, seen by Reuters, extends the tax break from its current 2031 expiry to March 31, 2041, and also exempts income from storing and supplying components used in electronics manufacturing until 2041. The provisions apply to mobile phones, tablets, laptops, hearing and wearable devices, and cover factories and warehouses in customs-bonded areas, which are attractive for exports. Additionally, the bill allows foreign companies using data centers in India to lease rather than own the facilities, lowering capital requirements, and introduces a 15-year tax exemption for foreign diamond miners and traders selling rough diamonds through designated zones.
Apple Inc.India's proposed tax break extension to 2041 for contract manufacturing machinery suppliers directly benefits Apple's iPhone production expansion in India.