India extends tax breaks for foreign equipment suppliers, boosting Apple

India has proposed extending tax exemptions for foreign companies that supply machinery and components to contract manufacturers until 31 March 2041. The draft amendment would also exempt income from storing parts in customs‑bonded warehouses and ease tax rules for foreign data‑center users. The move is a major win for Apple, which lobbied for certainty after fearing that Indian tax law could treat its supplied equipment as a taxable "business connection". Apple is expanding iPhone production in India, which is expected to account for 26 % of global output by 2026, up from 6 % four years earlier. "The proposed tax changes will enable foreign companies to store and transfer critical equipment and components in India for their contract manufacturers, helping mitigate supply chain disruptions arising from trade uncertainties while providing greater tax certainty," said Riaz Thingna, partner at Grant Thornton Bharat.