The government of India is reportedly planning to offer longer tax exemptions to foreign technology companies. This news is speculated to be part of a bid to convince these manufacturers to invest in the country and set up manufacturing hubs that rival China.
Financial Times (FT) reported the proposed boosted tax exemptions were submitted to parliament on the 4th of August 2026, with finance minister Nirmala Sitharaman stating they should be pushed through with urgency to “provide ease of doing business and tax certainty”.
The government has tabled a proposal which would extend tax exemptions by a decade through to 2041, building on a bill introduced earlier this year, valid until 2031.
According to FT, suppliers have asked the government to amend laws to ensure companies are not taxed for owning machinery provided to their manufacturers.
The document states the proposals are “aimed squarely at strengthening India as a manufacturing base, especially for electronics, and at deepening supply chains that support it”, before adding the measures “give them long-term certainty they need to commit.”
The bill is expected to be given the green light by parliament in the coming days, applying the exemptions to manufacturers of mobile phones, tablets, laptops, servers and wearables.
Bloomberg first reported the country was looking to expand incentives for smartphone manufacturing in March.
Apple stands to be a big winner from the proposals, with Omdia estimating the company is expected to increase iPhone production to up to 65 million units this year. This would represent 26% of total iPhone shipments as it continues to diversify manufacturing away from China.
Source: Mobile World Live
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Source: Tahawul Tech