Policy & Ethicsdata centerscloud servicesforeign investment
India Offers Tax Holiday To Cloud Providers
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10.0
Finance Minister Nirmala Sitharaman proposed in her Budget 2026 speech a tax holiday until 2047 for foreign companies that provide cloud services globally if they use data centre services based in India. Firms must also serve Indian customers via a local reseller and related-entity data centre providers get a 15% safe-harbour on cost; the move aims to spur data-centre investment.
Scoring Rationale
Official, wide-reaching budget incentive that fundamentally reshapes cloud investment, strong credibility and immediate industry impact.
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