Narendra Modi’s government has proposed widening tax exemptions for foreign investors such as Apple, extending tax breaks by 10 years to 2041 for companies that supply equipment to contract manufacturers including Taiwan’s Foxconn and domestic giant Tata Electronics, which assemble iPhones in India.

Finance minister Nirmala Sitharaman said the amendments, submitted to parliament on Tuesday, were needed “on an urgent basis” to “provide ease of doing business and tax certainty.” The exemption, originally valid until 2031, was introduced this year under Modi’s “Make in India” drive.

Smartphone makers had asked for changes to avoid taxation on machinery they provide to manufacturers. The finance ministry noted the original window was “too short to plan large, long‑term investments.” The bill, expected to pass soon, covers mobile phones, tablets, laptops, servers and wearables.

The move “lessens the burden” on foreign firms and “will provide a boost” to the sector, said Pankaj Mohindroo of the India Cellular & Electronics Association. Apple is projected to produce a record 26 per cent of global iPhone shipments in 2026, up from 22 per cent in 2025, as it diversifies from China.