“The Union Budget 2026 sends a strong signal about where India is headed. It recognizes that AI-led growth isn’t possible without deep, resilient data and digital infrastructure at its core. With the economy sustaining momentum at around 7% and public capital expenditure increasing to ₹12.2 lakh crore in FY27, the focus on advanced technologies, especially AI, reflects a long-term commitment to building infrastructure at national scale.
The extension of tax holiday incentives for data center services until 2047 is a particularly important step. It provides the certainty needed to unlock sustained investment in high-performance, energy-efficient, and resilient data centers – the foundation of modern AI and cloud ecosystems.
As enterprises and public institutions accelerate adoption of data-intensive and AI-driven workloads, the ability to manage, protect and scale data securely will become mission-critical. Together, these measures reinforce India’s ambition to emerge as a global AI innovation hub and lay the groundwork for a truly future-ready digital economy.”
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