India is one of the biggest markets for Apple and the iPhone-maker has consistently invested in the country in the form of retail stores, employment opportunities, direct investments and more. However, it has not been able to fully commit itself to the cause, thanks to an age-old law in the country which the brand is desperate to change.
Apple proposes tweaks to the foreign ownership of equipment clause in the 1961 Income Tax Act
Media house Reuters has exclusively revealed that Apple is in active talks with India's IT and finance ministries to propose a no-taxation model for the ownership of high-end iPhone machinery provided to its contract manufacturers in the country.
The brand claims that the current foreign ownership of equipment clause in the Income Tax Act of 1961 is affecting the brand's expansion in the country and making it rethink its approach for India. Moreover, Apple is even estimated to lose billions of dollars in additional taxes if it decides to restructure its strategy in India without convincing the Government to reshape its Income Tax Act.
Hence, a common ground is at this point crucial for both parties to reach. Taiwan's Foxconn Inc. is the largest manufacturer of iPhones in India and has reportedly shipped $7.5 billion (approximately Rs 63,000 crore) worth of iPhones by August 2025 alone, compared to $7.4 billion for the entirety of 2024.
So, it is clearly evident that the iPhone consumer base is not only vast in India, but "Made in India" iPhones are now ruling the global markets. If Apple decides to pull the plug at this crucial stage, future iPhone models like the iPhone 18 series will become way too expensive for Indian consumers.
At the time of writing, the Indian Government is reportedly yet to budge from its position. Also, the current law, as it is, only affects Apple in a major way. Brands like Samsung remain unaffected since they have dedicated plants in India, which are in direct ownership and control of the brand. Hence, we believe that if the Government decides to show relaxation for a single player, albeit a major one, it will directly threaten the country's sovereign right to tax a foreign company.
