New Delhi, Feb. 1 -- In a move aimed squarely at reshaping India's digital infrastructure landscape,Nirmala Sitharaman, Finance Minister, Government of India, announced a long-term tax incentive for global cloud service providers that route their international operations through Indian data centres.

Presenting the Union Budget 2026-27, Sitharaman proposed a tax holiday until 2047 for foreign companies that deliver cloud services globally using data centres located in India, provided they operate through an Indian entity. The announcement positions India as a potential tax-neutral base for global cloud workloads.

"Attracting global business and investment, recognising the need to enable critical infrastructure and boost investment in dat...