India, Feb. 1 -- Union finance minister Nirmala Sitharaman on Sunday announced a tax holiday until 2047 for any foreign company that provides cloud services to customers globally by setting up data centres in India.

"Recognising the need to enable critical infrastructure and boost investment in data centres, I propose to provide a tax holiday till 2047 to any foreign company that provides cloud services to customers globally by using data centre services from India," said Sitharaman in her budget speech.

She added that companies providing data centre services to their own group firms from India will get tax certainty, with the government allowing a fixed 15% profit margin over costs to be treated as acceptable, reducing the risk of tran...