India offers 20-year tax break for foreign data-centre services
Big news for India's tech scene: the government just announced a 20-year tax holiday up to 2047 for foreign companies that procure data-centre services in India.
The idea is to make India a hotspot for global data services by offering this relief to those foreign procurers; it does not allow new or existing domestic data centers to skip Indian taxes on their earnings, nor does it mean centers set up by foreign companies will automatically be exempt.
Long-term strategy to position India as a global data hub
This move is expected to attract major international players and boost investment in India's digital infrastructure. Homegrown giants like Nxtra Data, CtrlS, Yotta Infrastructure, and AdaniConneX could also see big benefits.
Domestic firms will still pay taxes on profits from global services, with special rules if they're linked to foreign companies.
It's a long-term play to put India on the map as a world-class data hub.