What tax benefits are offered to foreign cloud firms in India?

Foreign cloud firms using data centers in India for global services are offered a tax holiday until 2047 under Budget 2026.

How will Budget 2026 help India's AI and cloud ambitions?

The budget aims to make India a global AI and cloud hub by incentivizing foreign companies to use Indian data centers, boosting digital infrastructure and investment.

When and where is the India AI Impact Summit taking place?

The India AI Impact Summit is scheduled from February 16-20, 2026, at Bharat Mandapam in New Delhi.

Home / Technology / India Courts Foreign Cloud Firms With Tax Perks

India Courts Foreign Cloud Firms With Tax Perks

1 Feb

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Summary

Foreign cloud firms get tax holiday until 2047 for using Indian data centers.
The policy aims to establish India as a global AI and cloud computing hub.
The AI Impact Summit will convene global leaders and industry experts.

India Courts Foreign Cloud Firms With Tax Perks

India's Union Budget 2026 has introduced a substantial tax holiday until 2047 for foreign companies that leverage data centers within India to deliver cloud services globally. This strategic move signals a strong governmental intent to transform India into a prominent international hub for Artificial Intelligence and digital infrastructure.

The government's focus on data centers is timely, as India prepares to take a central role in global AI discussions. The policy aims to position the nation not just as a consumer of these services but as a foundational base for the world's digital backbone. The Finance Minister stated that this holiday is crucial for enabling critical infrastructure and encouraging investment in data centers.

This initiative is expected to boost India's role as an export hub for cloud computing, vital for the growing demands of AI, cloud services, and digital payments. Experts have lauded the budget for strengthening the policy framework necessary for India to excel as a global technology and AI execution center. The upcoming India AI Impact Summit, scheduled from February 16-20, 2026, in New Delhi, is poised to be a major global event focused on AI.