India allows foreign companies to invest in local contract manufacturing facilities without any tax risks.

The Indian government on Sunday allowed foreign companies to provide machines to its contract manufacturers in specific fields for a period of five years without bearing any tax risks. This measure brings significant benefits to Apple. Apple has been lobbying the Indian government to amend the income tax law to ensure that its ownership of high-end iPhone devices provided to contract manufacturers is not taxed. India announced on Sunday that, in order to "promote contract manufacturers to produce electronic products," specific legal revisions will be made to ensure that foreign companies holding equipment purely will not be taxed accordingly. This move is expected to accelerate investments in the electronic manufacturing sector by companies like Appleby covering the initial costs of expensive equipment, it will alleviate the initial cost burden on their contracting manufacturing partners.