India plans more tax breaks to sweeten Apple's iPhone production

appleinsider.com Aug 3, 2026

India plans more tax breaks to sweeten Apple’s iPhone production

Curated by Shubham · TechCapsules · Aug 3, 2026

AI-summarised brief · reviewed before publication

India is drafting a proposal to extend its tax exemption on manufacturing machinery and component imports for foreign firms from 2031 to 2041, a move aimed at bolstering Apple’s iPhone production in the country. The original incentive, introduced in February after Apple lobbied against duties on machinery it owned but leased to contract manufacturers, will now also cover storage and shipment of export‑only components in customs‑bonded zones, eliminating import taxes on those parts. The plan requires parliamentary approval and could take months or years. In addition, the proposal widens a data‑center tax break, allowing Indian partners to lease facilities rather than own them, reducing capital barriers for smaller firms. Together, the measures seek to make India a more attractive hub for Apple’s export‑focused iPhone supply chain.

💡 Why It Matters

· By removing duty costs on export‑bound hardware, India positions itself as a low‑tax manufacturing gateway, giving Apple a cost‑effective alternative to China and accelerating the shift of its global supply chain.

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