In a potential win for Apple Inc. (NASDAQ:AAPL), the Indian government has granted a major tax exemption, which will allow foreign companies to supply machinery to their contract manufacturers in certain areas for five years without any tax liability.

India Exempts Foreign-Owned Machines From Tax

The Indian Finance Minister Nirmala Sitharaman, during the 2026-27 annual budget on Sunday, announced that it would amend its laws to prevent foreign companies from incurring taxes merely by owning machines.

This exemption will be in effect until the 2030-31 tax year and will apply only to factories in designated customs-bonded areas, which are technically considered outside India’s customs border.

The Indian government stated that income from supplying capital goods, equipment, or tooling to a contract manufacturer in India is eligible for tax exemption.

The move is expected to encourage Apple and other companies to invest more in the electronics manufacturing sector by covering the initial expenses for expensive machines, thus reducing the financial burden on their contract manufacturers.

Apple had ...