Budget 2026: Data Centre Tax Holiday to Boost AI, Jobs; New High-Speed Rail Corridors
Budget
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CNBC TV18•01-02-2026, 20:18
Budget 2026: Data Centre Tax Holiday to Boost AI, Jobs; New High-Speed Rail Corridors
- •Ashwini Vaishnaw highlights a 22-year tax holiday for data centers until 2047 as a key Budget initiative to make India a global AI and digital infrastructure hub.
- •The incentive aims to attract significant investments (estimated $70-90 billion pipeline) in data centers, positioning India as a leading AI services destination and creating substantial youth employment.
- •The Budget strengthens the IT and electronics ecosystem through four measures: expanding electronics manufacturing scheme, launching Semicon 2.0, new safe-harbor regime for IT services, and the extended data center tax window.
- •Seven new high-speed rail corridors, including Mumbai-Pune-Hyderabad and Delhi-Varanasi, are planned with an investment of ₹16 lakh crore, transforming mobility and regional economic growth.
- •Semicon 2.0 focuses on building a domestic semiconductor industry, including manufacturing equipment and design, to enable India to produce complete electronic systems locally.
Why It Matters: Budget 2026 initiatives like the data center tax holiday and new high-speed rail will drive AI growth, job creation, and infrastructure development.
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