Budget 2026: Government to provide tax holiday for foreign companies offering cloud services using India data centres
The Hindu
Budget 2026 offers a tax holiday for foreign cloud service companies using Indian data centres, promoting investment and infrastructure.
Finance Minister Nirmala Sitharaman on Sunday (February 1, 2026) proposed tax holiday till 2047 for foreign companies that provide cloud services to customers worldwide by using data centres in the country.
The tax holiday will be extended to the entities concerned subject to certain conditions.
In the Union Budget 2026-27 speech, Ms. Sitharaman said there is a need to enable critical infrastructure and boost investment in data centres.
"I propose to provide tax holiday till 2047 to any foreign company that provides cloud services to customers globally by using data centre services from India," the Minister said.
To avail the tax holiday, companies need to provide services to Indian customers through an Indian reseller entity.
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