Home > India > Union Budget 2026: Government Offers Tax Holiday for Global Cloud Firms Using India Data Centres & Digital Knowledge Grid Announced

Union Budget 2026: Government Offers Tax Holiday for Global Cloud Firms Using India Data Centres & Digital Knowledge Grid Announced

Union Budget 2026 signals a shift toward AI, creators, digital media and cultural tech, focusing on infrastructure, formalisation and global competitiveness.

By: Amreen Ahmad
Last Updated: February 1, 2026 13:43:33 IST

Union Budget 2026: The Union Budget for the year 2026 is set to arrive at a time when the digital India ecosystem has already overpowered the regulations, planning and recognition of the budget. Starting from social media platforms and the creator economy to AI-driven advertising and digital publishing, the industry has come to define the consumption patterns of people, the dissemination of culture and the way of doing business with over 900 million internet users and a growing digital workforce, the budget will reveal whether India will only be home to platforms or build a global digital capital.

Union Budget 2026: Digital Media & the Push for Technology Parity

Digital publishing has moved on from simple content creation to data-driven distribution, automation and reach in regional languages. In India, the digital news reader base is largely non-English-speaking, but news organizations use of technology, AI and training incentives are not balanced. Industry leaders say that digital media needs to be viewed as a technology-enabled sector and not as an afterthought to increase reach and credibility.

Union Budget 2026: AI, AdTech & the Infrastructure Question

Artificial intelligence is no longer a research area it has become an operational necessity for MarTech and AdTech by 2030, the adoption of AI is expected to add more than $500 billion to the GDP of India. In Budget 2026, the emphasis is on developing compute infrastructure, India-centric language models and systems that are ready for compliance. A simplified tax structure for AI investment and easier regulatory procedures are considered essential for Indian companies to remain competitive globally.

Union Budget 2026: Creator Economy: Influence Without Income

India is home to approximately 2 to 2.5 million active digital creators, who are influencing consumer expenditure exceeding $350 billion annually. However, only under 10% of these digital creators have access to regular income and the Budget is challenged to ensure that this population is brought into the formal sector with more defined tax regulations, simplified GST, better credit access and greater social security provisions otherwise, growth could accelerate, but sustainability would be slower.

Union Budget 2026: IP, Music & Ownership in the Digital Age

With the rise of short-form videos, AI-composed music and immersive content, the traditional licensing and copyright laws are coming under the screws. The need for a clear and forward-looking IP framework that protects rights holders and facilitates compliance is being advocated by industry players. In India, the ownership of creative IP, which goes beyond the delivery of a service, is being identified as the next big digital export opportunity.

Union Budget 2026: Tourism, Culture & Digital Storytelling

In Budget 2026, digital growth is linked to preserving culture through initiatives such as the Digital Knowledge Grid and the development of tourism through technology. Through the cataloging of cultural assets, the training of guides to think digitally first, and the implementation of immersive technology in archaeological and eco-tourism sites, it provides new employment opportunities for creatives, historians and media professionals, as well as expanding India’s footprint on the global cultural map.

Most Popular

The Sunday Guardian is India’s fastest
growing News channel and enjoy highest
viewership and highest time spent amongst
educated urban Indians.

The Sunday Guardian is India’s fastest growing News channel and enjoy highest viewership and highest time spent amongst educated urban Indians.

© Copyright ITV Network Ltd 2025. All right reserved.

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?