Budget 2026-27: Incentives for India Inc. to Boost Investment and Growth

• The Budget 2026-27 aligns with the past five years' strategy, focusing on reducing compliance costs, offering sector-specific tax incentives, and increasing public investment to spur private sector growth.
• Customs processes are streamlined with reduced verification for trusted importers, improved warehousing through self-declarations, electronic tracking, and risk-based audits, emphasizing trust and less intrusive procedures.
• IT Services receive a safe harbor shield with a common margin of 15.5% for all services, aiming for tax certainty and encouraging investment to achieve 10% global share by 2047.
• Data centers are a focal point, with a tax holiday until 2047 for foreign companies providing global cloud services from India, supporting the AI investment boom.
• SMEs are supported by a proposed Rs 10,000 crore SME Growth Fund and a new scheme to upgrade infrastructure and technology in legacy industrial clusters, while public capital expenditure remains a key growth driver with a record Rs 12.2 lakh crore allocation.

Why It Matters: The Budget 2026-27 consistently incentivizes India Inc. through tax breaks, compliance ease, and public capex.