In a big push to position India as a global hub for digital infrastructure and cloud computing, Finance Minister Nirmala Sitharaman has announced a tax holiday extending until 2047 for foreign companies setting up or utilising data centres in India to provide cloud services. She made this announcement during her annual Union Budget speech at the Parliament.Presenting the Union Budget 2026-2027 in Parliament, Sitharaman proposed a tax holiday for foreign companies that provide cloud services to global customers from data centres located in India. The incentive aims to attract substantial investments in critical digital infrastructure, aligning with India’s ambition to become a key player in the global data economy and support the growth of AI and cloud technologies.”To boost global business and investment in critical infrastructure, we propose to provide tax holiday till 2047 to any foreign company that provides cloud services to customers globally from data centres in India,” she stated in her Budget speech.This announcement comes amid rising demand for data centres to power AI, cloud computing, and digital services, with India witnessing increased commitments from international tech giants.