India, Feb. 1 -- Budget 2026-27 positions IT and services as key drivers of India's economic growth

Safe harbour threshold for IT services raised sharply to ease compliance

Government announces fresh push on AI adoption and semiconductor manufacturing

Tax holiday offered to foreign firms using data centres based in India

The Union Budget 2026-27 has positioned the information technology sector as a core driver of India's economic growth, announcing a series of measures aimed at easing compliance for IT services firms, expanding the use of artificial intelligence, and attracting global investment in digital infrastructure.

Key proposals include a higher threshold for safe harbour rules covering IT services, the launch of a new phase o...