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India Courts Foreign Cloud Firms With Tax Perks
1 Feb
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'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.




