India, Feb. 1 -- Financial minister Nirmala Sitharaman in her Budget speech proposed that foreign cloud service provider companies will be given a tax holiday till 2047. She noted the services to Indian customers must be provided through an Indian reseller entity.

Reseller entities are Indian-incorporated companies that deliver cloud, AI, or digital infrastructure services to global customers from infrastructure located in India.

Sitharaman also proposed a 15% safe harbour on costs for companies providing data centre services from India through related entities.

These announcements are expected to enable critical infrastructure and boost investment in data centres, a booming sector in India. The sector's growth is being driven by a com...