India has proposed extending tax breaks until 2041 for foreign companies that supply machinery to their contract manufacturers, handing a win to Apple as it expands iPhone production in the country, Reuters reports. The move represents a significant policy shift aimed at bolstering domestic manufacturing capabilities.

Introduced in February, the exemption previously ran only until 2031, and Apple had long since lobbied against being taxed on the high-end iPhone machinery it owns in India. The company's advocacy highlights the strategic importance of the Indian market to its global supply chain diversification efforts.

The draft bill still has to be passed by both houses of parliament before becoming law. If enacted, the extension would provide long-term certainty for Apple and its contract manufacturers, including Foxconn and Tata, as they scale operations across the region.