Win For Apple? Govt Moves To Extend Tax Sops For Contract Manufacturers Till 2041

In a significant development for Apple, the Indian government has proposed extending tax exemptions for foreign companies that supply machinery to their contract manufacturers in the country until 2041. This proposal, detailed in the Taxation And Other Laws (Amendment) Bill, 2026, covers a range of electronic goods including mobile phones, laptops, and servers.

The amendments also provide tax exemptions to foreign companies' income generated from storing and providing parts needed for manufacturing these devices to contract manufacturers in customs bonded areas (CBAs) till the same date. CBAs are areas where goods can be stored and processed without immediate payment of customs duties and taxes, making these facilities attractive for export-oriented businesses.

This move follows Apple's lobbying efforts to relax income tax laws to avoid being taxed for the ownership of high-end machinery provided to vendors. Apple's record Q3 FY26 earnings, driven by strong demand for its Mac lineup, have put the company in a favorable position to advocate for such a policy. The proposed tax relief is limited to factories and warehouses located in CBAs, which are considered outside the customs authorities' purview.

This extension of tax benefits comes on the heels of Apple's announcement of a record June 2026 quarter, further solidifying its growing presence in India, where iPhone exports have reached over ₹2 lakh crore in FY26.