Apple’s contract manufacturing tax breaks in India could be extended to 2041
9to5mac.com Aug 3, 2026

Apple’s contract manufacturing tax breaks in India could be extended to 2041

AI-summarised brief · reviewed before publication

India’s government is preparing a draft amendment that would prolong a tax exemption for foreign firms supplying machinery and equipment to contract manufacturers from its current 2031 expiry to 2041. The relief shields overseas suppliers from Indian income tax on assets used in factories and warehouses located in bonded zones, treated as outside the country’s customs border. The extension covers producers of mobile phones, tablets, laptops, hearing aids and wearable electronics, and requires parliamentary approval in two houses. The measure follows cuts to import duties on key smartphone components and is seen as a win for Apple, which has lobbied for the incentive. Apple aims to raise its Indian production share from 6 % to 26 % of iPhone output by 2026.

💡 Why It Matters

  • · Extending the exemption makes India a more attractive hub for Apple’s supply chain diversification, accelerating the shift of iPhone assembly away from China.