India proposes extending tax breaks for contract manufacturing in a boost for Apple

India has also proposed to make it easier for foreign companies that use data center services in the country to make use of tax exemptions.

India in February announced a tax exemption until 2047 for foreign companies using data centers in the country to provide services to global clients, addressing concerns that New Delhi could in future tax their global income for using such facilities.

The bill now allows data centers to be leased, rather than be owned by the Indian partners of foreign companies.

Allowing Indian partners to lease, rather than own, data centers will lower capital requirements and make it easier for smaller and mid-sized players to enter the market, said Thingna from Grant Thornton Bharat.

Separately, India has also proposed a 15-year tax exemption for foreign diamond miners and traders that sell rough diamonds through designated trading zones in the country. India is already the world's largest diamond-cutting and polishing centre.