“It is commendable to see the government meeting the fiscal deficit targets for FY’26 despite a very volatile external environment, tax rate rationalization both on taxation for Individuals announced as part of last budget and GST rates rationalization during the year.
The budget clearly articulates the Government’s vision to promote the Indian IT services sector as a primary driver of India’s economic growth, leveraging Artificial Intelligence (AI) as the force multiplier. By identifying AI as central to accelerating and sustaining economic growth, the government underscores its strategy to establish India as an AI-powered economic superpower. Proposal to provide long term tax exemption for data center services provided from India to foreign customers will help in establishing India as a data center hub.
The proposals such as combining IT services and R&D Services into a single bucket, increasing the threshold limit for safe harbor and providing a 2-year timeline for conclusion of unilateral APAs will provide tax certainty and reduce the cost of compliance for companies operating in the sector.
We also welcome the government’s initiatives to further improve ease of doing business, as these reforms will support enterprises across sectors by alleviating operational challenges and boosting India’s economic growth momentum.” – Aparna Iyer, CFO, Wipro Limited
