Archive · 2 Feb 2026
India Announces Tax Holiday for Cloud Services and Clean Energy Incentives
The Union Budget 2026 announced a big tax break for foreign companies that invest in cloud services and data centres in India until 2047.
This is to attract big companies like AWS, Microsoft Azure, and Google Cloud.
The budget also includes support for clean energy, like exempting taxes on things needed for solar panels and batteries.
There are plans to build high-speed train routes and support places rich in minerals.
The budget aims to make India a leader in digital technology and clean energy, while also creating jobs and helping businesses grow.
It also gives people a chance to fix mistakes about money they have abroad without getting in trouble.
Tax holiday announced for foreign companies investing in cloud services and data centres in India till 2047
BCD exemption on capital goods for Lithium-Ion Cells, solar glass, and nuclear power projects
Support for creating Rare Earth Corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu
Seven high-speed rail corridors announced, including Mumbai-Pune and Pune-Hyderabad
Safe harbour threshold for IT services raised to ₹2,000 crore with a 15.5% margin
- Who
- Foreign companies investing in cloud services and data centres in India, Indian government, and various industry experts
- What
- Tax holiday for cloud services, clean energy incentives, and high-speed rail corridors
- When
- Announced in Union Budget 2026, effective till 2047
- Where
- India
- Why
- To attract global hyperscalers, boost AI and cloud services, reduce dependence on China for critical minerals, and enhance infrastructure
- Tax Holiday Duration
- Till 2047
- Target Companies
- Foreign companies providing global cloud services using Indian data centres
- Purpose
- Attract foreign investment in cloud services and data centres
- Alignment
- India's push for AI adoption and cloud scaling
- Vision
- Viksit Bharat vision to become a global digital hub
- Safe Harbour Margin
- 15.5% for IT services
- Threshold for Safe Harbour
- Enhanced from ₹300 crore to ₹2,000 crore
- Rare Earth Corridors
- Support for Odisha, Kerala, Andhra Pradesh, and Tamil Nadu
- Capital Expenditure
- ₹12.2 lakh crore for FY 2026-27
- High-Speed Rail Corridors
- Seven corridors including Mumbai-Pune and Pune-Hyderabad
Sources
Union Budget 2026 Tax Updates: Tax Holiday Till 2047 For Global Cloud; TCS & TDS Cuts Explained
Budget 2026: E2E Networks share price jumps 10% as FM proposes tax holiday for data centre investments
India Budget 2026: Tax holiday for foreign data centre operators; safe harbour margin for IT services to boost sector
Why did Wipro, TCS, Coforge and other tech stocks rally up to 4.6% despite stock market sell-off? Explained
India charts rare earth corridors to break China’s grip on critical minerals
Amid n-power push, govt exempts custom duty on capital goods
Union Budget 2026: India charts rare earth mineral-corridors to break China’s monopoly
Tax holiday for GIFT City businesses doubled to 20 years
Budget Will Help Boost Semiconductor, AI Industries: Ashwini Vaishnaw To NDTV
NE: Industry players hail Union Budget as catalyst for tourism-led growth and investment
Pune to be crucial node in high-speed rail corridors, techies flag missing Bengaluru link
Budget prioritises building clean energy value chain with BCD exemptions, rare earths corridor
Budget 2026: Safe harbour threshold for IT services raised to ₹2,000 crore
Non audit tax filers to have 3 more months to file revised return, one time scheme to disclose foreign assets
Important amendments to tax laws
Majhi says Union Budget to boost Odisha’s logistics, industrial ecosystem
Missed declaring foreign assets? Budget 2026 offers a fresh start
Budget 2026-27: Cloud giants cheer conditional tax-free ride to set up data centres in India
UK industry ‘bullish’ about progressive Budget that sustains reform momentum
Five-year tax exemption plan explained| Why India just handed Apple, other electronics manufacturers a massive tax break
Budget 2026: As markets fell, data centre & AI stocks surged after tax holiday for cloud services
Data Center Industry To See Major Boost With Tax Holiday, Say Experts
Industry must drive India’s AI
Budget 2026 paves the road for stronger data centre infra
Budget 2026 | AI impact on jobs and services: Panel to look at the road ahead
Budget without ‘big bang’ measures: Nomura sees capex focus as positive, disinvestment target ambitious
21-Year Tax Holiday, 15% Safe Harbour: Decoding India's Big Data Centre, AI Bet
Budget gives 'Make in India' aircraft a push, scraps customs duty on key components
