- Shares of IT services firms rose after FM Sitharaman announced tax holiday till 2047 for cloud data centres.
- Coforge, TCS, Infosys, Persistent Systems, and Wipro gained more than 2% each in response to the announcement.
- The tax holiday applies to foreign companies providing cloud services by establishing data centres in India.
Shares of information technology services companies rose after Finance Minister Nirmala Sitharaman proposed a tax holiday for foreign companies that establish cloud services infrastructure through data centres in India.
Coforge, Tata Consultancy Services, Persistent Systems and Wipro gained more than 2% each during the session following the announcement.
Presenting the Union Budget 2026-27, Sitharaman said any foreign company that provides cloud services by setting up data centres in India will be eligible for a tax holiday until 2047.
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She said the measure is intended to promote investment in domestic data centre infrastructure and support expansion of digital capacity within the country. The proposal covers foreign entities that establish and operate cloud services infrastructure locally. The tax benefit will apply for an extended period to encourage long-term projects.
The announcement forms part of the government's broader push to develop digital infrastructure alongside physical infrastructure. The Budget speech emphasised investment in technology-enabled systems, computing capacity and digital services delivery.
Cloud infrastructure supports storage, processing and hosting requirements for enterprises and institutions. The proposal seeks to increase the presence of such facilities within India.
The tax holiday measure was presented among several sector-specific initiatives aimed at encouraging investment across industries.
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