US EditionUnion Budget 2026: India hands Apple a win by letting foreign firms fund equipment for manufacturers
The exemption applies to machines owned by foreign firms at contract manufacturing facilities in customs-bonded areas for five years, boosting India’s electronics sector growth.
- On Sunday, the Union government of India allowed foreign firms to supply machines tax-free to contract manufacturers in certain areas for five years, announced by Nirmala Sitharaman, Finance Minister.
- Apple had been lobbying India to change tax rules after fearing that owning iPhone machinery could trigger taxes, forcing contract manufacturers Foxconn and Tata to spend billions themselves.
- The Budget text specifies income from providing capital goods to an Indian contract manufacturer is exempt, and Shanky Agrawal said `This exemption resolves a risk that could have derailed electronics manufacturing deals in India`.
- The decision is expected to speed scale-up and give global electronics players greater confidence to manufacture in India, while China still accounts for roughly 75% of global iPhone shipments and India’s share has quadrupled to 25%.
- Market data from Counterpoint Research shows devices sold from customs-bonded areas will attract import taxes, making them primarily export-focused, through the 2030-31 tax year.
22 Articles
22 Articles
India's Major Tax Exemption On Foreign-Funded Equipment For Contract Manufacturers—A Win For Apple? - Apple (NASDAQ:AAPL), Hon Hai Precision (OTC:HNHAF)
In a potential win for Apple Inc. (NASDAQ:AAPL), the Indian government has granted a major tax exemption, which will allow foreign companies to supply machinery to their contract manufacturers in certain areas for five years without any tax liability. India Exempts Foreign-Owned Machines From Tax The Indian Finance Minister Nirmala Sitharaman, during the 2026-27 annual budget on Sunday, announced that it would amend its laws to prevent foreign c…
Budget 2026–27: Apple Scores Policy Victory As India Exempts Foreign Firms From Tax on iPhone Manufacturing Equipment for 5 Years | 📲 LatestLY
The Indian government has granted a five-year tax exemption to foreign firms providing machinery to local contract manufacturers. Revealed in Budget 2026-27, the move supports Apple’s expansion by reducing capital burdens on partners like Foxconn. The policy aims to boost electronics exports and solidify India’s position in global supply chains. 📲 Budget 2026–27: Apple Scores Policy Victory As India Exempts Foreign Firms From Tax on iPhone Manu…
India hands Apple a win by letting foreign firms fund equipment without tax risk
India's government on Sunday handed a major win to Apple by allowing foreign companies to provide machines to their contract manufacturers in certain areas for five years without any tax risk.
Union Budget 2026: India hands Apple a win by letting foreign firms fund equipment for manufacturers
India, during the Union Budget 2026-2027, said that "to promote manufacturing of electronic goods for a contract manufacturer", it is making certain law changes to ensure that mere ownership of machines by a foreign company does not lead to income or taxes on it.
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