The Taxation and Other Laws (Amendment) Bill, 2026 aims to strengthen India's position as a global manufacturing and digital hub by offering targeted tax incentives under the China Plus One strategy.
NEWS: Union Government introduced the Taxation and Other Laws (Amendment) Bill, 2026 in the Lok Sabha.
Highlights
- Reduce global supply-chain risks, attract foreign investment, and promote high-tech manufacturing & digital infrastructure under the China Plus One strategy.
- Extends tax exemption till 2041 for specified electronics manufactured by foreign OEMs.
- 15-year tax exemption for foreign companies storing components in customs-bonded warehouses for domestic manufacturers.
- 15-year tax exemption for foreign diamond miners/aggregators trading rough diamonds in notified special zones.
- Allows foreign cloud companies to use leased data centres without separate project notifications, boosting digital infrastructure investment.