What is Tax Holiday announced for foreign cloud firms till 2047 in Union Budget
New Delhi: Finance Minister Nirmala Sitharaman on Sunday announced a major tax incentive aimed at attracting global cloud service providers to set up and expand their operations in India. Under the Union Budget proposals, foreign companies that offer cloud services worldwide by using data centres located in India will be granted a tax holiday until 2047.
Announcing the measure, Sitharaman said the move is intended to draw global investment into India’s digital infrastructure, generate employment and strengthen the country’s role in the global digital economy.
A tax holiday is a policy tool used by governments to encourage investment. It involves a temporary reduction or complete exemption from certain taxes, usually corporate or income tax, for a defined period. Such incentives are often offered to promote specific sectors, boost economic activity and create jobs.
Under the new proposal, foreign cloud service providers will be allowed to operate globally using data centres based in India, but services to Indian customers must be routed through an Indian reseller entity. This structure is meant to ensure local participation and regulatory oversight while still allowing global companies to base their infrastructure in India.
Indian companies that provide data centre services to these foreign firms will receive a safe harbour tax rate of 15 per cent. Safe harbour provisions offer certainty on tax liability by fixing profit margins in advance, reducing disputes and making it easier for businesses to plan their operations.
The Budget also includes measures linked to electronic manufacturing. Non-resident companies will be allowed to use bonded warehouses in India to store components. These entities will be taxed on a profit margin of just 2 per cent of the invoice value, translating to an effective tax rate of around 0.7 per cent. The government says this rate is significantly lower than what is offered by many competing countries.
Explaining the rationale behind the move, Sitharaman said the policy would encourage large-scale investment in data centres and related infrastructure, create local jobs and help India emerge as a global hub for digital and cloud services.
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AgriWalk held in Bengaluru to spotlight value addition, farmer empowerment
Bengaluru (PTI): Hundreds of citizens of different age groups took part in the 'AgriWalk' held at Cubbon Park here on Sunday, as the Karnataka Agriculture Department sought to spotlight the need to move agriculture beyond mere production and empower farmers as entrepreneurs, officials said.
The walk, organised as a pre-event to the upcoming International Trade Fair 2026, was held under the theme 'A Walk for Empowering Farmers' aimed at creating awareness about value addition, processing, branding and sustainable agricultural practices as pathways to improving farmers' incomes.
The Agriculture Minister N Cheluvarayaswamy flagged off the walk near the Cubbon Park Bandstand. The walk commenced at 6 am and covered a route passing through Queens Road, Vidhana Soudha, BBMP Tower, UB City Signal and Vittal Mallya Road, before concluding at the Bandstand.
Nearly 4,000 participants, including children, youth, women and senior citizens, registered for the AgriWalk, reflecting growing public interest in food systems, farmer welfare and healthy lifestyles. A Zumba dance session was organised as a warm-up activity prior to the walk, a release said.
The AgriWalk scheduled to be held from February 6 to 8 at Tripuravasini, Palace Grounds, here, it said.
Cheluvarayaswamy said, India's agricultural strategy is undergoing a major shift from mere production to profitability, with a renewed emphasis on value addition, branding and market linkages to turn farmers into entrepreneurs.
He said sustained initiatives by the Central and State governments have led to a steady rise in agricultural output, enabling the country to move ahead of many other nations. "The challenge now is not just producing more, but ensuring farmers earn more by processing their produce, adding value and accessing markets directly," he said.
The minister said empowering young farmers as agri-entrepreneurs is a key focus of the government's policy framework. This vision, he added, is at the heart of the upcoming agricultural fair.
He said the three-day event will serve as a platform connecting farmers with technology, branding opportunities and national markets. More than 300 stalls, including those of Farmer Producer Organisations (FPOs), will showcase modern machinery, processing techniques and innovations spanning the entire agricultural value chain.
According to officials, Bengaluru, with its health-conscious population and strong market for organic and value-added products, was described as having the potential to emerge as a global hub for processed and value-added agricultural produce.
