India proposes extending tax incentives for foreign companies that supply equipment to local manufacturers until 2041, a measure considered beneficial for Apple.

The Government of India intends to extend until 2041 the tax incentives for foreign companies that supply equipment to local manufacturers operating in a contract manufacturing system. This measure is considered a victory for Apple, which has requested a change in tax legislation to avoid taxation on production equipment used in Indian factories.

India is thus becoming an increasingly important manufacturing base for Apple, with estimates that 26% of global iPhones will be manufactured in India by 2026. The bill proposed by Indian authorities offers 'tax certainty' to investors and extends tax benefits to other sectors of the electronics industry, such as laptops and wearable technologies. The government also proposes tax incentives for the diamond industry, aiming to strengthen India's position as a global center for diamond cutting and polishing.