New Incentives for Electronics and Diamond Sectors Under 2026 Tax Bill

A major thrust of the bill is to position India as a global hub for electronics manufacturing. Companies that set up factories for mobiles, laptops, tablets, PCs, servers or key components will see the tax holiday on earnings from such units extended from five to ten years. For certain electronics supply‑chain activities, income generated will be entirely tax‑free for fifteen years, making India’s ecosystem more competitive. The legislation also offers a fifteen‑year full tax exemption on income from the sale of raw diamonds by foreign mining firms operating in designated zones in Mumbai and Surat, aiming to capture a larger share of the global rough‑diamond trade.