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AI Gold Rush: India Offers Tax-Free Haven Through 2047

India Offers Tax Breaks to Attract Global AI Investment

India announced a tax holiday on Sunday, offering zero taxes through 2047 to foreign cloud providers on revenues from cloud services sold outside the country if those services are run from data centers within India, according to a statement from Finance Minister Nirmala Sitharaman. The proposal, included in the country's annual budget, aims to attract the next wave of AI computing investment to the South Asian nation, TechCrunch reported.

The tax exemption applies to revenues generated from cloud services sold outside of India, Sitharaman told parliament. Sales to Indian customers would be routed through locally incorporated resellers and taxed domestically. The budget also proposes a 15% tax incentive for specific manufacturing activities.

The move comes as the global race to build AI infrastructure intensifies. India hopes to position itself as a key player in the AI landscape, despite potential challenges such as power shortages and water stress that could threaten expansion in the country.

AI-Assisted Journalism

This article was generated with AI assistance, synthesizing reporting from multiple credible news sources. Our editorial team reviews AI-generated content for accuracy.

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