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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Rahul Gandhi joins Haryana Congress leader's 'Sadbhav Yatra' in Gurugram
Gurugram (PTI): Congress leader Rahul Gandhi on Friday joined the 'Sadbhav Yatra' of Haryana Congress leader Brijendra Singh here.
Gandhi, who is the Leader of Opposition in the Lok Sabha, reached Gurugram in the evening and joined the yatra. He also walked some distance with Brijendra, state Congress chief Rao Narender Singh and other leaders.
Huge crowds had turned up for the occasion.
Later, Gandhi proceeded to the venue where he addressed a public gathering.
Leader of Opposition in Haryana Bhupinder Singh Hooda and other Congress leaders, including Randeep Singh Surjewala, B K Hariprasad, state Congress chief Rao Narender Singh, were also present.
Brijendra Singh had on Thursday said it is a matter of joy for them that Gandhi was joining the 'Sadbhav Yatra' in Gurugram-Badshahpur, "thereby strengthening the Indian National Congress' campaign for brotherhood and harmony".
The 'Sadbhav Yatra' began from Danoda village at Narwana in Jind on October 5, 2025, and has covered 85 of the 90 assembly segments in the state.
The foot march was started by Brijendra Singh, son of Congress veteran Birender Singh, to highlight several national and regional issues.
State Congress chief Rao Narender Singh had asked all party leaders to take part in Friday's event.
Days before his yatra began in October, Brijendra Singh, who narrowly lost the 2024 assembly polls from Jind's Uchana Kalan, accused the ruling BJP of playing "divisive politics" and said that "sadbhav" (harmony) has come under stress in the last decade.
Brijendra Singh was a sitting MP from Hisar for the BJP when he resigned ahead of the 2024 general election and switched over to the Congress. He also alleged that the saffron party creates a wedge in society to achieve its political purpose.
The 'padyatra' has so far covered 85 assembly constituencies in Haryana, traversing more than 2,700 kilometres.
Addressing the public gathering, Brijendra Singh said the yatra is inspired by Rahul Gandhi's Bharat Jodo Yatra, where he took the party's vision and values directly to the people of the country.
Singh said the yatra has highlighted issues like "Vote Chori" (vote theft), unemployment, poor law and order situation, agrarian distress, and issues related to government employees, labourers and traders.
"Sadbhav (harmony) and bhaichara (brotherhood), which the BJP is attempting to weaken, are the messages of this yatra," he said, adding that its slogan is "Congress ka haath bhaichara ka saath".
"This yatra is a natural extension of the Bharat Jodo Yatra," Brijendra Singh said.
