FAIITA applauds Budget 2026–27 push for digital infrastructure and IT growth

The Federation of All India IT Associations (FAIITA) has commended the Union Budget 2026–27 for its strong and forward-looking emphasis on strengthening India’s digital infrastructure and information technology ecosystem. The association said the Budget reflects a clear strategic intent to position India as a global digital and innovation hub.

FAIITA particularly welcomed the announcement of a tax holiday until 2047 for multinational corporations offering cloud services from India-based data centres. According to the association, this measure provides long-term policy certainty, encourages large-scale investments in data centres, and significantly enhances India’s attractiveness as a trusted destination for global cloud, data and AI-led services.

Another key positive highlighted by FAIITA is the introduction of a uniform safe harbour margin of 15.5% for IT services, along with an increased threshold of Rs. 2,000 crore. The association said this reform will bring much-needed stability, reduce disputes, and improve the ease of doing business for IT companies operating at scale.

FAIITA also welcomed the launch of Semiconductor Mission 2.0, which focuses on indigenous manufacturing of semiconductor equipment, materials, and full-stack designs powered by Indian intellectual property. The association described this as a critical step towards building a self-reliant semiconductor ecosystem and strengthening India’s position in global technology supply chains.

The enhanced allocation of Rs. 40,000 crore for the Electronics Components Manufacturing Scheme (ECMS), along with targeted investments in artificial intelligence, data centres and digital expansion, further reinforces the government’s commitment to technology-led growth. FAIITA noted that these measures are expected to create significant employment opportunities while accelerating innovation across the IT and electronics sectors.

FAIITA reiterated its commitment to working closely with the Government of India and industry stakeholders to support policy implementation and advance India’s digital sovereignty and long-term competitiveness.