India proposes extending tax breaks for contract manufacturing in a boost for Apple

India has proposed extending tax exemptions to 2041 for foreign firms supplying machinery and components to contract manufacturers, a move that directly benefits Apple as it accelerates iPhone production diversification away from China. The draft also expands tax relief for foreign companies storing parts in customs-bonded areas and eases rules for data center users and leases, improving the operating environment for multinational supply chains. For Apple, the policy reduces tax uncertainty around equipment ownership and component warehousing in India, supporting its manufacturing footprint in a market projected to produce 26% of global iPhones in 2026 versus 6% four years ago. The broader implication is a stronger incentive for global tech and electronics companies to expand manufacturing and logistics in India.