Budget 2026-27: What is the 'Foxconn' factor
The Union Budget 2026-27 just rolled out a five-year income tax exemption for foreign companies supplying equipment to Indian manufacturers in bonded zones.
This change fixes old tax issues that made giants like Foxconn and Tata buy iPhone machinery themselves, making it easier for global players to work with Indian factories.
The government is doubling its support for electronics manufacturing
A Budget measure extends a safe-harbour profit margin of 2% to non-resident warehousing of components in bonded warehouses, which would translate into an effective tax rate of about 0.7%—which means cheaper, faster access to parts and smoother production lines.
The government is also doubling its support for electronics manufacturing, pumping ₹40,000 crore into the sector and launching India Semiconductor Mission 2.0.
All this could mean more jobs, better tech products made in India—and India's share of global iPhone shipments has quadrupled to 25% since 2022.
If you're interested in tech or looking ahead at careers, this is a big deal for the future of "Make in India."