India is planning to provide Apple with up to 15 years of tax certainty for its manufacturing operations, a move designed to encourage the iPhone maker to expand production, invest in new facilities, and deepen its manufacturing footprint in the country.
Under the proposed plan, the tax certainty would extend until March 31, 2041, up from the current deadline of 2031. The existing framework was introduced in February 2026 as part of the Union Budget for 2026–27 and was registered as Clause 109 of the Finance Bill, which amended Schedule IV of the Income-tax Act 2025.
The proposal is linked to India’s business connection rules, which determine how foreign companies are taxed when operating in the country. A predictable tax environment helps companies plan long-term investments without fear of sudden policy changes. For a business investing billions in factories and supply chains, such stability is critical.
In India, Apple funds the high-precision machinery used by Foxconn and Tata Electronics to assemble iPhones. Building new factories is a long-term commitment that requires years to set up production, hire workers, and develop supplier networks. Stable tax rules reduce business risks and make these decisions easier.
The initiative builds on a 2016 agreement between Apple CEO Tim Cook and Indian Prime Minister Narendra Modi to establish a production base in India that goes beyond simple assembly. If approved, the extended tax certainty could help India attract more global manufacturers, strengthen its role in Apple’s worldwide supply chain, and bring additional jobs, investment, and exports to the country.