“We welcome the Union Budget 2026, which reinforces India’s shift towards a competitive, AI-driven digital economy. By prioritizing new technologies and promoting innovation through initiatives such as the AI Mission, the National Quantum Mission, and the Research and Development and Innovation Fund, the government is laying a solid foundation, enabling businesses to adopt smarter, more intelligent solutions across their operations.
The long-term tax holiday for global cloud service providers and investments in data centers will help free up costs, allowing companies to invest more in AI innovation, ensure performance and reliability, and expand their infrastructure. Complementing this, expanding the safe harbor threshold for IT and tech services will ensure regulatory clarity and reduce compliance burdens, making it easier for technology providers to scale their operations.
For SMEs, these initiatives are transformative. The combination of AI technologies, simplified compliance, and accessible digital infrastructure opens new paths for growth. It empowers them to improve efficiency, engage customers better, expand their presence, and participate more in India’s next phase of digital growth. At Infobip, we sit at the intersection of intelligent automation and cloud communications, and these measures will enable tech platforms like us to innovate more responsibly and deepen localization while empowering businesses to create a more connected, safer, and outcome-driven experience for their customers.”
