US EditionNo income tax changes, capex up, NRIs gain… The big takeaways from Union Budget 2026
India increases public capital expenditure for FY27 by 8.9%, extends tax holiday for foreign cloud data centers until 2047 to boost digital infrastructure and attract stable investment.
- On February 1, 2026, Finance Minister Nirmala Sitharaman proposed tax holidays until 2047 for foreign cloud and data-centre companies, requiring them to serve Indian customers through an Indian reseller entity.
- To deepen India's digital infrastructure, the Budget frames tax holidays and cloud expansion incentives as part of a broader push to sustain infrastructure‑led growth.
- Capex details reveal public capital expenditure rises to Rs 12.2 lakh crore for FY 2026–27 from Rs 11.2 lakh crore, with a fiscal deficit pegged at 4.3% of GDP.
- Requiring firms to use an Indian reseller entity, the Budget mandates foreign cloud firms to serve Indian customers this way and promises to conclude the advance pricing agreement for IT services companies shortly.
- By raising PROI limits, the Budget deepens long-term capital with individual 10% and overall 24% limits, while the Income Tax Act, 2025 takes effect on April 1, 2026 alongside the Bharat Vistar AI platform.
19 Articles
19 Articles
Budget 2026: Sitharaman announces tax holiday till 2047 to boost data centre ecosystem
Recognising the need to enable critical infrastructure and boost investment in data centres, Finance Minister Nirmala Sitharaman has proposed to provide tax holiday till 2047 to any foreign company that provides cloud services to customers globally by using data centre services from India.
Sitharaman's ninth budget blends immediate concerns with long-term structural goals, emphasizing AI, hi-tech, and fiscal consolidation
The budget focuses on new economy sectors such as artificial intelligence, hi-tech, rare earths, and data centers. The budget also emphasizes fiscal consolidation, with a target to keep the fiscal deficit at 4.3% of GDP in 2026-27. The government plans to increase capital expenditure on infrastructure projects to stimulate economic growth and create jobs, while also promoting private investment.
No income tax changes, capex up, NRIs gain… The big takeaways from Union Budget 2026
Union Budget 2026: Finance Minister Nirmala Sitharaman presented her ninth Budget today, which was built on three ‘kartavyas’ — accelerating economic growth, building people’s capabilities, and ensuring inclusive development. In her speech, she noted that capital expenditure (capex) would increase to Rs 12.2 lakh crore, as well as the building of seven high-speed rail corridors. But no changes were announced on income tax
India Boosts Cybersecurity, Cloud, Data Centres - Cybernoz - Cybersecurity News
When Union Finance Minister Nirmala Sitharaman of India presented the Union Budget 2026–27 on February 1, it became clear that this year’s financial roadmap is not only about fiscal numbers, it is also about shaping the infrastructure of India’s digital future. The India Budget 2026 sends a strong and confident message: India wants to lead in the next phase of global growth, and that leadership will be built on AI, cloud, data centres, semicondu…
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