India's Tax Holiday Aims to Revolutionize Tech Landscape

The Union Budget's tax holiday for global cloud firms using Indian data centers could position India as a global AI hub, as per Cognizant's CFO Jatin Dalal. The initiative may lead to transformative effects on the tech industry, building a unified framework and expanding opportunities.

The recent tax holiday extension announced in the Union Budget for global cloud companies leveraging Indian data centers is poised to reshape India's tech landscape. This strategic move could establish India as a global center for AI and technological services in the forthcoming years, according to Cognizant CFO Jatin Dalal.

Dalal believes the budget's proposals are set to bring 'far-reaching consequences' to the technology sector. By integrating various IT service segments into a unified tax framework and increasing the safe harbor limits, India is aligning itself with a grand vision to become a pivotal player in the global tech arena.

Cognizant CEO Ravi Kumar emphasized the role of the 'AI Economic Council' as an exciting initiative that parallels historical transitions, such as the shift from personal computers to the internet. Kumar underscored the potential of increased productivity and wages, which he sees as crucial for non-inflationary GDP growth and consumer spending.

(With inputs from agencies.)