India offers tax relief to ease Apple’s manufacturing expansion

Details: Manny Pham; Category: Devices & Platforms; 02 February 2026; 9371 views

The Indian government has granted international companies, including Apple, a tax break allowing them to supply machinery to contract manufacturing partners without triggering tax liabilities at selected sites for up to five years.

Reuters reported that companies in India previously risked having taxes imposed on profits if machinery provided to contract manufacturers was deemed a “business connection”, a provision that pushed factory partners such as Foxconn and Tata to invest billions of dollars in equipment themselves.

India is increasingly positioning itself as a manufacturing hub for Apple as the iPhone maker shifts production away from China to mitigate geopolitical risks. Analyst house Counterpoint Research estimates around 25% of iPhones are now manufactured in India, up fourfold since 2022, although China still accounts for roughly three-quarters of total iPhone shipments. In the domestic market, around 8% of Indian consumers have bought an iPhone since 2022.

Apple has lobbied the Indian government to amend tax rules on high-end machinery supplied to its manufacturing partners, and the latest move is expected to encourage further investment and capacity expansion across its Indian operations.