Union Budget 2026 : Tax Holiday For Foreign Companies Offering Cloud Services In India

by · Inc42

SUMMARY

  • FM Nirmala Sitharaman proposes a tax holiday to foreign companies which are providing cloud services globally using data centre services from India till 2047
  • The National Data Centre Policy 2025 draft, which was released in September 2025, anticipated that the government was considering tax exemptions for data centre developers for up to 20 years
  • Global and hyperscale players such as NTT Data, Reliance, AWS and Google have announced hefty investments to set up data centres in India