Apple Inc. has reportedly intensified lobbying efforts in India to persuade the government to amend a tax regulation that the company believes is hampering its ability to expand operations in one of its fastest-growing markets. According to sources familiar with the matter, the U.S. tech giant is seeking revisions to India’s “equalisation levy” and other tax provisions that apply to cross-border digital and manufacturing transactions.

Tax Dispute Seen as Key Obstacle to Apple’s India Growth

Apple’s concern centers around a specific clause in India’s tax code that affects how multinational companies are taxed on digital and intellectual property-related revenues. Industry insiders say the rule complicates Apple’s ability to structure supply chains efficiently and discourages further investment in manufacturing and retail. The company argues that the current framework creates a double taxation scenario for firms that import components and sell high-value devices in India.

Part of a Larger Push to Strengthen Local Presence

The lobbying effort comes at a crucial moment as Apple scales up iPhone production in India through partners like Foxconn, Pegatron, and Tata Electronics. The company has been gradually shifting manufacturing away from China, aiming to make India a central hub in its global supply chain. Analysts estimate that India could account for nearly 25% of Apple’s total iPhone production by 2026 if tax and infrastructure issues are resolved.

Government Reviewing Industry Inputs

Indian finance ministry officials are said to be reviewing representations from Apple and other global technology firms ahead of the upcoming Union Budget. The government has been receptive to industry feedback, particularly in the context of its “Make in India” initiative, which aims to attract foreign investment and boost exports. However, policymakers are balancing the need to support domestic startups while ensuring multinational corporations contribute fairly to India’s tax revenues.

Broader Implications for India’s Tech Ambitions

If Apple’s request leads to policy adjustments, it could pave the way for other global giants—such as Google, Amazon, and Meta—to seek similar clarifications or relief. Economists note that a clearer and more predictable tax regime could help India solidify its position as a preferred manufacturing and technology hub, particularly amid global supply chain realignments.