What is Apple lobbying the Indian government for?

Apple is lobbying the Indian government to modify its income tax law to ensure the company is not taxed for ownership of high-end iPhone machinery it provides to its contract manufacturers in India.

Why is the Indian government cautious about changing the tax law?

The Indian government is cautious about changing the tax law because any modifications could diminish its sovereign right to tax a foreign company like Apple. The government must balance the need for investments and tax revenue.

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Apple Lobbies India to Modify Tax Law, Seeks Expansion Boost

Q: How has Apple's presence in the Indian market changed?

According to Counterpoint Research, Apple's iPhone market share in India has doubled to 8% since 2022, and India now accounts for 25% of global iPhone shipments, up from just 6% in 2022.

15 Oct

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Summary

Apple lobbying India to change 1961 tax law on foreign equipment ownership
Apple's India market share doubles to 8% since 2022, but faces billions in taxes
India cautious about changes, wants to balance investments and tax revenue

Apple Lobbies India to Modify Tax Law, Seeks Expansion Boost

As of October 15, 2025, Apple is actively lobbying the Indian government to modify its income tax law. The company is seeking to avoid being taxed for owning the high-end machinery it provides to its contract manufacturers in India, a move seen as a hurdle to its future expansion in the country.

Apple's push for this change coincides with its growing presence in the Indian market. According to Counterpoint Research, the iPhone's market share in India has doubled to 8% since 2022, and India now accounts for 25% of global iPhone shipments, up from just 6% in 2022. However, the company faces a potential tax burden of billions of dollars due to the current legislation.

In China, Apple is able to provide the machines used to manufacture iPhones to its contract manufacturers without being subject to additional taxes. But in India, the Income Tax Act would consider Apple's ownership of this equipment as a "business connection," making the company's iPhone profits liable for Indian taxes.