Finance Minister Nirmala Sitharaman announced a tax holiday till 2047 for companies providing cloud services by setting up data centres in the country.

Finance Minister Nirmala Sitharaman announced a tax holiday till 2047 for companies providing cloud services by setting up data centres in the country. She, however, added that these companies would need to provide services to Indian customers through an Indian reseller entity. Sitharaman said the government recognises the need to enable critical infrastructure and attract investment. The tax holiday is expected to be in place until 2047, according to the proposal. The proposal has been welcomed by the cloud computing industry. The tax break is expected to benefit companies with a turnover of more than $1 billion.