India's tax breaks draw $70 billion into data centers
Business
India's new tax breaks are pulling in a massive $70 billion wave of global investment for data centers.
Announced by Finance Minister Nirmala Sitharaman in Budget 2026, capacity expanded from 375 MW in 2020 to over 1,500 MW by 2025, especially in cities like Mumbai, Chennai, Bengaluru, and Hyderabad.
Indian cloud firms risk falling behind
Global players have to team up with Indian firms to build these new centers and serve international markets.
But there's a catch: local companies aren't getting the same support for investing in GPUs and cloud platforms.
Industry voices like RackBank's Narendra Sen say that without better incentives and easier funding, India's own cloud sector could fall behind, even as interest from global players grows.