New Delhi, Feb. 1 -- In her Budget speech in parliament on Sunday, Union finance minister Nirmala Sitharaman laid out a proposal for global cloud service providers such as Microsoft, Google and Amazon to use more Indian data centres, promising zero tax until 2047 on global cloud services provided by them through an Indian entity and from an Indian data centre.

"Attracting global business and investment, recognizing the need to enable critical infrastructure and boost investment in data centres, I propose to provide tax holiday until 2047 to any foreign company that provides cloud services to customers globally, by using data centre services from India," Sitharaman said.

In simple terms, cloud providers will need to use Indian data centr...