In its fiscal budget for the 2026 - 2027 period, the Indian government has declared that foreign enterprises are now authorized to supply production equipment to their contract manufacturers in select industries without facing tax - related risks for a span of five years. In the past, firms such as Apple insisted that their contract manufacturers acquire the equipment on their own. This was because there were worries that, according to Indian law, if Apple funded the equipment purchases by the contract factories, it would be regarded as a 'business connection.' As a result, the profits from iPhone sales would be liable to taxation. This legal modification is anticipated to motivate companies like Apple to ramp up their investments in electronic manufacturing within India. It will also ease the initial financial strain on contract manufacturers. Some legal experts have pointed out that this exemption eliminates a major hurdle in the electronics manufacturing sector. Moreover, it is expected to draw more international electronics companies to boost their production operations in India.