India announces tax holiday for foreign cloud providers until 2046-47
India announced a tax holiday for data centers: Foreign companies providing cloud services to customers globally through data center services located in India won't pay taxes here until FY 2046-47, subject to essential conditions and notification by MeitY.
The move is designed to attract global investment and boost the country's digital infrastructure, but slow rollout of rules and regulatory hurdles could make things tricky for investors.
India data centers face regulatory hurdles
Experts are excited about India's potential: The country's data center capacity is set to triple by 2029, making it Asia's fastest-growing digital infrastructure market.
There's already more than $50 billion committed from major tech players.
But as Manoj Paul, Managing Director, India, Equinix points out, financial and regulatory issues (like GST complications) still need fixing to keep momentum strong.