The Government has introduced a long-term tax incentive to make India a global hub for AI and cloud data centres.
👉 What does this mean?
• Foreign cloud companies using Indian data centres to serve global customers will get a tax holiday until
2047.
• Services for Indian customers must be routed through an Indian entity.
• A fixed profit margin rule reduces tax disputes for related companies.
✅ Why should an ordinary taxpayer care?
• More global investment coming into India
• Stronger digital infrastructure
• Job creation and technology growth
• Improved availability of cloud and AI services
This move positions India as a long-term digital infrastructure destination.
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