Budget 2026: India to Lure Global AI Investment with New Incentives

• Union Budget 2026 may announce incentives to attract global investment in Artificial Intelligence (AI) and data centers.
• Google has already committed $15 billion for an AI hub in Andhra Pradesh, with the government aiming for similar future investments.
• Industry seeks tax exemptions for data center developers, customs duty relief on imported equipment, and input tax credit refunds.
• Amazon and Microsoft invested over $50 billion in cloud/data infrastructure; Intel partnered with Tata Electronics for chip manufacturing.
• Government launched the AI Mission in March 2024 with ₹10,372 crore outlay to foster innovation and a comprehensive AI ecosystem.

Why It Matters: Budget 2026 aims to boost India's AI ecosystem by attracting global investment through new incentives.