What significant win did Apple receive in India's Budget 2026?

Apple received a significant win as India's Budget 2026 allows foreign companies to fund manufacturing equipment tax-free for five years.

How does India's Budget 2026 benefit Apple's iPhone production?

The budget removes tax risks for Apple when it funds machines for contract manufacturers like Foxconn and Tata Electronics, safeguarding its sales profits.

For how long will foreign firms be able to fund manufacturing equipment tax-free in India?

Foreign firms can fund manufacturing equipment tax-free for a period of five years, as per the new provision.

Home / Business and Economy / Apple Secures Major Win: Tax Risk Lifted for iPhone Production Funding

Apple Secures Major Win: Tax Risk Lifted for iPhone Production Funding

2 Feb

•

Summary

Foreign firms can now fund manufacturing equipment tax-free.
Apple avoids tax risk on its iPhone sales profits in India.
This provision is valid for five years and applies to specific areas.

Apple Secures Major Win: Tax Risk Lifted for iPhone Production Funding

India's latest budget, announced on February 2nd, 2026, has delivered a substantial win for technology giant Apple. The government has introduced a provision allowing foreign companies to freely provide machinery to their contract manufacturers situated in specified zones. This crucial change means Apple can now fund the procurement of equipment for its manufacturing partners, such as Foxconn and Tata Electronics, without facing potential tax liabilities on its profits from iPhone sales.

Previously, Indian tax laws could interpret such funding as establishing a 'business connection,' leading to taxation on Apple's revenue. The new regulation, effective for a period of five years, removes this significant risk for companies operating within designated manufacturing areas. This move is expected to further bolster India's position as a key manufacturing hub for global electronics brands.