Lok Sabha clears tax bill extending electronics supply-chain incentives to 2041

The proposed amendments extend tax exemptions for electronics capital-goods suppliers through March 31, 2041 and offer a 15-year income-tax exemption for foreign firms warehousing electronic components. The bill still requires Rajya Sabha approval.

— Filed Thu, 6 Aug, 2026, 15:32 IST · Source Business Today · Latest · Updated

Lok Sabha passed a tax-amendment bill supporting Indian electronics manufacturing, bonded component warehousing, digital infrastructure, diamond trade and payment-mode regulation. Measures include extended tax exemptions for foreign electronics suppliers and a 15-year exemption for component warehousing, subject to Rajya Sabha approval.

Why this matters

The bill follows India’s inventory-based framework for cross-border e-commerce exports and comes as rice procurement rises 5% toward its 2025-26 target.

Retail-company signals are accelerating, up +167289% QoQ.