Bold IT bets: Tax holiday for global cos using India data centres, safe harbour sweeteners for GCCs
Bold IT bets: Tax holiday for global cos using India data centres, safe harbour sweeteners for GCCs
NEW DELHI: (Feb 1) The Union Budget on Sunday proposed a 20-year tax holiday for foreign cloud service providers using data centres in India and rationalised the safe harbour framework for IT firms, as the government moved decisively to position the country as a global hub for AI, GCCs, and digital infrastructure.
The long-term incentives to foreign cloud and tech giants are expected to turbocharge investments in cutting-edge data facilities and digital infrastructure.
IT Minister Ashwini Vaishnaw said he expects USD 200 billion investment to flow into data centres - and it is also seen as sharpening India's edge in the global AI race, at a time when New Delhi is keen to take centre stage in global discourse on Artificial Intelligence.
