Lok Sabha Clears Tax Reform Bill to Draw Global Investors and Electronics Makers
What Happened
The Lok Sabha has passed the Taxation and Other Laws (Amendment) Bill, 2026. The legislation simplifies tax rules for offshore investment funds, grants tax relief to certain foreign investors, and extends key tax incentives for electronics manufacturing until 2040-41 from the earlier sunset of 2030-31. Expands the list of covered electronic products to include laptops, tablets, servers, wearables, hearables, and related accessories. It further grants 15 year income tax exemption to foreign companies storing electronic components in customs-bonded warehouses for supply to Indian contract manufacturers, a move aimed at strengthening the electronics supply chain.
Key Takeaways
The Bill reinforces India's strategy of becoming a global manufacturing and investment hub by offering long-term tax certainty, encouraging foreign capital inflows, and supporting high-growth sectors.