Budget 2026: Digital Infra a National Priority, Experts Hail Semiconductor, Data Centre Push

• Union Budget 2026 solidifies digital infrastructure as a national priority, with experts praising incentives for semiconductors and data centres.
• Foreign companies setting up data centres in India for overseas customers will be exempt from income tax until 2047.
• A 'safe harbour of 15 per cent' on cost is proposed for related parties providing data centre services from India.
• These proposals aim to position India as a global hub for cloud, AI, and data-led services, attracting investment and creating skilled jobs.
• While digital infrastructure and AI strategy are lauded, experts note slow progress and unspent allocations for semiconductor fabs and R&D units.