Budget 2026-27 lays strong foundation for AI Data Centres and Semiconductor Ecosystem

• Union Budget 2026-27 (presented 1 Feb 2026 by FM Nirmala Sitharaman) introduced a long-horizon policy package for AI Data Centres and the semiconductor value-chain through tax incentives, India Semiconductor Mission (ISM) 2.0, and an enhanced Electronics Components Manufacturing Scheme (ECMS).
• Anchor measure: a tax holiday valid till 2047 for foreign companies running global cloud/AI services through India-based data centres, positioning India as a hub on the AI infrastructure layer.
• Relevant for GS-III (Indian economy, IT, science & tech) and GS-II (government policies); high Prelims yield on schemes, outlays, and ministries.