The Taxation and Other Laws (Amendment) Bill, 2026, introduces a number of provisions where the Government has used tax exemptions and relaxations to encourage foreign investment, manufacturing and financial activity in India. Attracting foreign investmentsOne of the significant amendments relates to investment in government securities. The exemption available to foreign companies supplying capital goods, equipment and tooling to Indian contract manufacturers is extended up to 2040-41. A new exemption is also proposed for foreign companies storing electronic components in customs bonded warehouses in India and supplying them to Indian contract manufacturers. The requirement for individual government notification of foreign companies and Indian data centres is also being relaxed.