India, Feb. 1 -- While presenting the Union Budget 2026 on Sunday, finance minister Nirmala Sitharaman has announced a 'tax holiday' for foreign companies in order to boost the setting up of data centres in India.

Under this reform, the government has proposed a "tax holiday" till 2047, which would work as a safe harbour of 15% on cost for companies providing cloud services using data centres in India. Follow LIVE updates on Budget 2026 here

Key points to note -

A tax holiday is a government-granted, temporary reduction or elimination of taxes-such as income, property, or sales tax. This "holiday" is announced to stimulate economic growth, encourage investment in specific industries or boost consumer spending.

Such an incentive is oft...