India's Tax Exemption Boosts Global Electronics Manufacturing
India has introduced a tax exemption for foreign companies providing capital equipment to Indian manufacturers in customs bonded areas, effective April 1, 2026. This exemption, valid until the 2030-31 tax year, aims to eliminate the tax uncertainties previously associated with foreign-owned equipment, which discouraged investment. The policy allows foreign companies to supply equipment without being taxed on the income generated, provided the equipment remains under the control of the Indian manufacturer. This move is expected to make India a more attractive destination for global electronics manufacturing. 
