Union Finance Minister Nirmala Sitharaman has announced a major push to make India a global cloud hub, marking an important expansion as the nation strengthens its digital and technology capabilities. In this new development, the government is offering a tax holiday till 2047 for foreign providers using Indian data centres, driving regional innovation initiatives, strengthening enterprise technology platforms, and enabling scalable, secure, and future-ready operations aligned with global business objectives.

The move reflects the government’s focus on leveraging infrastructure as a key enabler of operational excellence and innovation. To ease transfer pricing concerns, a safe harbour of 15% on cost has been proposed for related entities providing data centre services from India, enhancing digital resilience across the enterprise.

Global players like Google, Microsoft, and Amazon Web Services have already announced multi-billion dollar investments. This strategy positions India to accelerate its digital journey, close the data hosting gap, and build a strong foundation for long-term growth.