India Offers Zero Taxes Through 2047 To Lure Global AI Workloads
India AI tax holiday offers zero rates through 2047 for foreign cloud providers running global workloads from local data centers.
Matilda
India Offers Zero Taxes Through 2047 To Lure Global AI Workloads
India Just Made a Bold Bet on AI—And It Could Reshape Global Cloud Computing India has launched an unprecedented tax incentive to become the world's next AI infrastructure hub: zero taxes on cloud services sold outside the country through 2047, provided workloads run from Indian data centers. Announced in the nation's 2026 budget by Finance Minister Nirmala Sitharaman, the policy targets U.S. and European cloud giants racing to expand AI computing capacity. While the offer promises massive savings for providers like Amazon, Google, and Microsoft, it arrives amid serious challenges—chronic power shortages and water stress threaten to complicate rapid scaling in a market hungry for investment. Credit: Google How the Zero-Tax Incentive Actually Works The tax holiday applies specifically to revenues generated from cloud and AI services delivered to customers outside India—but only when those computations occur within Indian data centers. This creates a powerful financial incentive for…
