Millions of people in India want to buy iPhones, but their high prices make them difficult to afford. iPhones cost more in India than in many other countries because of premium pricing, heavy import duties, and limited local manufacturing.
Now, the central government has taken an important decision that Apple has been waiting for. In Budget 2026, new tax rules were announced that could benefit foreign companies and may also affect iPhone prices in India.
New Tax Rules in Budget 2026
While presenting the Union Budget on Sunday, Finance Minister Nirmala Sitharaman announced major relief related to manufacturing equipment in India.
Under the new rules, foreign companies like Apple can now provide expensive machinery to their contract manufacturers in India, such as Foxconn and Tata, without worrying about being taxed.
Earlier, there was a concern that if a foreign company installed machinery in India, it could be treated as a business connection and become taxable. The new rules remove this fear and make manufacturing in India easier for global companies.
iPhones May Become Cheaper
Because of this change, Apple will be able to manufacture iPhones in India on a larger scale and at a lower cost. With reduced machinery costs and fewer tax issues, overall production costs will fall.
This can directly affect iPhone prices. If more iPhones are manufactured in India instead of being imported, the heavy import duty will reduce. As a result, iPhones could become more affordable for Indian customers.
Impact of Local Manufacturing
iPhones made in India will not only face lower import duties but will also save money on logistics and supply chain costs. Apple already assembles iPhones in India, but the new rules could speed up local production.
As production increases, Apple may have more flexibility to reduce prices, especially for older and budget-friendly models.
Benefits for Other Companies Too
This decision is not limited to Apple. Samsung and other global smartphone companies can also benefit from it. However, Apple may gain the most because India is becoming an important alternative to China.
If Apple turns India into an export hub, higher production volumes could further increase the chances of cheaper iPhones in the Indian market.
