tech
February 1, 2026
India offers zero taxes through 2047 to lure global AI workloads
New Delhi's latest move comes as Amazon, Google, and Microsoft expand data center investments in India.
TL;DR
- India offers a tax holiday on revenues from cloud services sold internationally if run from Indian data centers, aiming to attract AI computing investment.
- Major cloud providers like Google, Microsoft, and Amazon are increasing their investments in India's data center infrastructure.
- India is also boosting incentives for electronics and semiconductor manufacturing, including a second phase of the India Semiconductor Mission.
- The country plans to address critical mineral supplies by supporting rare-earth corridors in mineral-rich states.
- Incentives are also being provided to boost cross-border e-commerce for small businesses.
- Execution challenges, including power availability and water scarcity, remain potential constraints for data center expansion.