Centre weighs UPI MDR return and tax-break extension for contract manufacturers to 2041

The Centre is reportedly considering reimposing merchant discount rates on UPI payments while extending tax exemptions for contract manufacturers until 2041, potentially strengthening the economics of Apple’s India production ecosystem.

— Filed Mon, 3 Aug, 2026, 21:58 IST · Source The Hindu BusinessLine · Updated

The Centre is moving to reimpose merchant discount rates on UPI transactions and extend tax exemptions for contract manufacturers until 2041, a policy move expected to materially benefit Apple’s India manufacturing ecosystem.

Why this matters

The proposal follows recent signals that India may extend contract-manufacturing and supplier tax exemptions to 2041, supporting Apple’s iPhone production push as the company expands its India supply chain.

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