To take the lead in the global artificial intelligence infrastructure competition, the Indian government has recently announced a highly attractive fiscal policy. According to the latest annual budget proposal, India will offer cloud service providers a "zero tax" incentive for up to 21 years, aiming to establish the country as a core hub for global AI computing power.
The core of this policy is to attract foreign investment. The Indian government stated that if foreign cloud service providers operate computing power in India and sell their services overseas, their business income will be tax-free until 2047. This move is seen as a strategic step by India to leverage its geographical and talent advantages to compete with the US and Europe in computing infrastructure investments.
Currently, global technology giants have responded enthusiastically. Amazon has pledged to invest about $75 billion in India by 2030; Microsoft and Google have also planned to invest over $15 billion each for building AI centers and data centers. At the same time, Indian local giants such as Reliance Industries and Adani Group are also actively laying out plans to develop AI-specific data center parks at the gigawatt level.
Although the policy benefits are significant, India's expansion of computing power still faces practical challenges. AI workloads require high energy consumption, while India currently faces issues such as unstable power supply, high electricity costs, and water shortages. In addition, how to coordinate land approval and environmental clearance will also be the key to whether these grand blueprints can be realized on schedule.
Key Points:
💰 21-Year Tax Holiday: India proposes zero taxation for cloud services operating within the country and sold overseas, with the preferential policy lasting until 2047.
🏗️ Major Companies Increase Investment: Technology giants such as Amazon, Microsoft, and Google have committed to investing hundreds of billions of dollars in India to build AI hardware and cloud infrastructure.
⚡ Implementation Faces Challenges: Although the policy is unprecedented in strength, India still needs to overcome infrastructure bottlenecks such as power shortages and water pressure to support high-energy-consuming AI computing power.
