The long-term coverage framework for data centres as much as 2047 positions India among the many main international locations for AI and cloud infrastructure, the minister mentioned.
Revealed: February 2, 2026 12:23 AM IST
New Delhi: The Union Budget for the Monetary Yr (FY) 2026-27 consists of a number of key measures aimed toward accelerating development within the Electronics, Data Know-how and Synthetic Intelligence ecosystem, mentioned Union Minister for Electronics and Data Know-how, Railways and Data & Broadcasting, Shri Ashwini Vaishnaw, whereas addressing the media.
AI Data Centres and Tax Incentives until 2047
Highlighting the deal with digital infrastructure, Ashwini Vaishnaw mentioned that data centres, notably AI data centres, play a crucial position within the infrastructure layer of the AI structure. He famous that investments of round USD 70 billion are already underway in India, with further bulletins of round USD 90 billion.
To additional encourage long-term investments, Budget 2026-27 has proposed a tax vacation until 2047 for overseas firms offering cloud providers to clients globally utilizing data centre providers from India. Such firms will present providers to Indian clients by means of an Indian reseller entity. A protected harbour of 15 p.c on value has additionally been proposed the place the data centre service supplier in India is a associated entity.
The long-term coverage framework for data centres as much as 2047 positions India among the many main international locations for AI and cloud infrastructure, the Minister mentioned.
India Semiconductor Mission (ISM) 2.0
Ashwini Vaishnaw mentioned that the Budget has introduced the launch of India Semiconductor Mission (ISM) 2.0, constructing upon the strong foundation created beneath ISM 1.0, which established a totally new and foundational semiconductor business in India.
ISM 2.0 will deal with designing and manufacturing semiconductor gear in India, manufacturing supplies utilized in semiconductor manufacturing, creating a big design ecosystem, and additional strengthening expertise growth initiatives. A provision of Rs. 1,000 crore has been made for ISM 2.0 for FY 2026-27.
Electronics Parts Manufacturing Scheme (ECMS)
The Union Minister mentioned that the allocation for the Electronics Parts Manufacturing Scheme (ECMS) has been elevated from about Rs. 22,000 crore to Rs. 40,000 crore within the Budget 2026-27. He highlighted the strong business response to the scheme, which has acquired 149 functions, considerably larger than the anticipated 50 to 55 functions. The improved allocation will assist keep the momentum generated by the scheme.
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