# Lok Sabha clears tax bill to ease data centre, electronics investment

2026-08-07T12:10:28+00:00 | Governance | Indian Opinion Desk

Corroboration: 1 independent outlet

The Lok Sabha has passed the Taxation and Other Laws (Amendment) Bill, 2026, removing separate government approval requirements that previously made India's 20-year data centre tax holiday hard to access for foreign cloud companies. The Bill also extends a tax exemption until 2041 for foreign firms using Indian contract manufacturers for electronics production. Eligibility for data centre incentives will now depend on statutory conditions rather than government notification, and leased facilities are permitted alongside owned ones. Industry bodies such as Nasscom welcomed the changes, saying they reduce compliance burdens and improve tax certainty. However, analysts caution that tax reforms alone will not drive investment, factors such as reliable power, fibre connectivity, and infrastructure readiness remain critical. Tech giants including Amazon, Microsoft, and Google have already committed nearly $57 billion to expand Indian data centre capacity in the coming years.

## Coverage

- inc42.com <https://inc42.com/features/new-tax-laws-amendment-bill-clears-path-for-simpler-data-centre-incentive-regime/>
- businesstoday.in <https://www.businesstoday.in/technology/news/story/new-tax-bill-targets-data-centres-electronics-manufacturing-can-india-attract-more-global-investment-548128-2026-08-10?utm_source=rssfeed>

Tags: AI infrastructure, cloud computing, data centres, Lok Sabha, Nasscom, tax incentives
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