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.

Indian officials are cautiously reviewing Apple's request, as any changes to the law could diminish the government's sovereign right to tax a foreign company. While India is eager to attract investments and boost its smartphone manufacturing capabilities, it must also balance the need for tax revenue. As one senior official stated, "It's a tough call."