India proposes tax extensions to support electronics suppliers and component trade
Proposed tax-law changes would extend exemptions for foreign suppliers to Indian electronics contract manufacturers through tax year 2040-41, add bonded-area relief for component sales until March 2041, and offer separate diamond-trade tax incentives.
Proposed tax-law amendments would clarify and extend incentives for foreign suppliers to Indian electronics contract manufacturers, including mobile phones and laptops, while adding bonded-warehouse component-sale exemptions and diamond-trade tax relief.
Why this matters
The proposal follows India’s plan for longer tax relief for electronics contract-manufacturing suppliers and its consideration of UPI MDR rules for larger merchants, extending its focus on supplier economics and merchant costs.
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