Finance Minister Nirmala Sitharaman on Sunday proposed a tax holiday until 2047 for foreign companies providing cloud services globally using data centres located in India, aiming to attract long-term investments into the country’s digital infrastructure.

The tax benefit will be extended to eligible entities subject to certain conditions, encouraging global tech firms to establish and expand their data centre operations within India.

Announcing the measure in the Union Budget 2026–27, she emphasized the need to strengthen critical digital infrastructure and position India as a major global hub for cloud and data services.