The Union Budget 2026 proposed a tax holiday until 2047 for foreign companies that provide cloud services to customers globally, using data centres located in India, signalling the government’s push to make the country a major hub for AI and digital infrastructure. The big push on data centres comes at a time when India is gearing up to take the centre stage in global discourse on Artificial Intelligence. It is expected to position India not just as a consumer of global cloud and AI services, but as a thriving base for the world’s digital backbone.