Budget offers tax holiday for global cloud firms using Indian data centres

The Union Budget on Sunday proposed a tax holiday till 2047 for foreign companies that provide cloud services to customers globally using data centres located in India, signalling the Government’s push to make the country a major hub for AI and digital infrastructure.

The big push on data centres comes at a time when India is gearing up to take the centrestage in global discourse on Artificial Intelligence. It is expected to position India not just as a consumer of global cloud and AI services, but as a thriving base for the world’s digital backbone.