India’s latest 2026-27 federal budget has introduced a major incentive for technology infrastructure — a 20-year tax holiday until 2047 for foreign companies that use Indian data centres to provide cloud services globally. This unprecedented measure aims to remove tax uncertainty and draw long-term capital into India’s rapidly growing data centre ecosystem, helping the country become a global digital infrastructure hub. Industry analysts say this clarity could significantly boost investor confidence and infrastructure development.
With technology giants such as Google, Microsoft, and Amazon already investing billions in Indian cloud and data centre capacity, the tax holiday is expected to accelerate deployment of advanced digital services. It also encourages global firms to use Indian infrastructure as a base for serving international clients, potentially creating jobs, strengthening local supply chains, and expanding India’s tech ecosystem. The clarity and longevity of this incentive make it a pivotal policy for future-focused technology growth.
