India proposes longer tax relief for electronics contract-manufacturing suppliers
The proposed Taxation and Other Laws (Amendment) Bill, 2026 would extend tax exemptions for foreign suppliers of electronics capital goods, equipment and tooling until 2040-41, while supporting bonded storage of components. The measures could deepen India’s electronics supply chain and improve sourcing conditions for consumer-tech retailers.
India proposes extended tax exemptions for foreign electronics contract-manufacturing suppliers and bonded storage of electronic components, potentially strengthening domestic electronics supply chains. The Bill also relaxes offshore-fund rules, extends diamond-zone tax holidays, and eases data-centre tax eligibility.