Tax ‘edge’ for foreign firms puts local data centre companies on edge

The budget proposal to provide a 20-year tax holiday for overseas investors setting up data centres in India has caused discontent among domestic companies. They fear this policy would put Microsoft, Amazon Web Services (AWS) and Google at a distinct advantage over Indian infrastructure companies that have invested billions of dollars in building the country’s digital backbone.

The Bharat Digital Infrastructure Association (BDIA), which represents local data centre operators, has prepared a seven-point policy charter that it aims to submit to the government seeking corrective measures to ensure a level playing field. ET has reviewed the document.