India Grants Tax Holiday To Global Cloud Providers

Union Finance Minister Nirmala Sitharaman on Feb. 11, 2026, defended the Union Budget proposal granting a tax holiday until 2047 for foreign companies that provide cloud services globally using Indian data centres, while clarifying four compliance conditions. She also announced a ₹1,000 crore allocation for the India AI Mission and said states will receive an additional ₹2.7 lakh crore in devolved funds for FY27.
Key Points
- 1Announces tax holiday until 2047 for foreign cloud providers using Indian data centres.
- 2Explains intent to keep data hosted in India and boost domestic employment and infrastructure.
- 3Requires notified Indian data-centre, MeitY approval, an Indian reseller, and notified foreign company.
Scoring Rationale
Official budget announcement introduces sweeping tax incentives and data rules; high authority and immediate, broad industry impact.
Sources
Public references used for this report.
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