Industry body Nasscom commended the Union Budget 2026 for its emphasis on technology driving inclusive and sustainable growth. Finance Minister Nirmala Sitharaman’s Budget, the ninth in a row, was lauded for its forward-thinking and collaborative approach, strengthening the government-industry partnership. Nasscom highlighted the Budget’s commitment to enhancing India’s global tech and services standing under the Viksit Bharat vision, with technology as a key driver of inclusive growth.
The rationalization of international taxation and transfer pricing framework was noted as a significant positive for the technology sector by Nasscom. The industry body also appreciated the Budget’s alignment with industry priorities, reflecting ongoing engagement and consultation efforts. Nasscom welcomed the consolidation of various IT services into a single category with a uniform safe harbor margin, facilitating certainty mechanisms for cross-border IT service models.
Moreover, Nasscom praised the Budget for bolstering the Advance Pricing Agreement framework and fast-tracking unilateral APAs for IT services. The proposal for a tax holiday until 2047 for foreign firms offering global cloud services through Indian data centers was seen as a strategic move to attract global investment. Nasscom also supported the focus on developing domestic capabilities in strategic technologies, including the India Semiconductor Mission 2.0 and increased outlay for the Electronics Components Manufacturing Scheme.
The Budget’s interventions to strengthen India’s cloud and digital infrastructure ecosystem were acknowledged by Nasscom as crucial steps. The industry body emphasized that the Budget’s policy approach, centered on technology, digital infrastructure, and tax certainty, enhances India’s long-term competitiveness. Nasscom concluded that the Union Budget 2026 sets a clear direction by aligning policy certainty with digital and manufacturing capabilities.
