India's AI Future: Budget 2026 to Unveil Incentives for Global Tech Giants

• Budget 2026-27 likely to prioritize AI and data centers, aiming to attract significant global investment into India's AI ecosystem.
• Major tech firms like Google ($15 billion in Andhra Pradesh), Microsoft, and Amazon (combined $50 billion) have already committed substantial investments in India's AI and cloud infrastructure.
• Industry seeks incentives such as conditional tax holidays for data centers, customs duty waivers on imported equipment, and input tax credit refunds to boost AI infrastructure.
• Government approved the Rs 10,372-crore India AI mission in March 2024, focusing on innovation, start-ups, data access, and responsible AI, including building GPUs and LLMs.
• Deloitte recommends policy guidelines for GPU procurement with fiscal incentives and relaxing the 1000 GPU minimum to encourage smaller players and start-ups.

Why It Matters: India's Budget 2026 aims to attract global AI investment through incentives, building on existing tech giant commitments.