India’s Union Budget 2026–27 lays out a long-term digital infrastructure strategy focused on AI, cloud, data centres, semiconductors, and integrated cybersecurity to position India as a global hosting and manufacturing hub. Major measures include a tax holiday for foreign cloud providers until 2047, unified IT services rules, expanded semiconductor and electronics manufacturing support, and strengthened safe-harbour provisions to attract investment and resilience. #IndiaBudget2026 #TaxHoliday2047
Keypoints
- Budget 2026 treats digital infrastructure as core economic infrastructure, prioritizing AI data centres and cloud capacity.
- A proposed tax holiday until 2047 for foreign cloud firms aims to make India a global hosting hub.
- IT services are unified under “Information Technology Services” with simplified safe-harbour margins and higher thresholds to boost growth.
- India Semiconductor Mission 2.0 and expanded ECMS funding target domestic chip capability and electronics manufacturing.
- The Budget links long-term growth with digital resilience by emphasizing cybersecurity, skilling, and multi-decade policy clarity.