Much of the State Department’s new measures have been directed at foreign investors, whose interest in India has slowed, data shows. So, the budget courts global capital and diaspora.Apart from a generous tax holiday on data centers until 2047, the proposed year for the country to meet Fixit Bharat, the Budget offered a 5-year tax holiday for foreign companies supplying capital goods and equipment, a clear incentive for supply chain manufacturing that is considering relocating to India.
Tax breaks, safe havens and incentives: Budget 2026 drives investment in India and boosts IT sector
The FM program has allowed persons resident outside India, non-resident Indians and others, to invest more in Indian stocks. It has raised the individual investment limit as well as the maximum amount of shares that foreigners can hold in an Indian company.Non-resident Indians are also potential beneficiaries of an asset disclosure scheme that provides immunity from prosecution. For “small” undeclared assets and incomes, a one-time admission is sufficient. The Budget bets that this will make more non-resident Indians, especially foreign professionals, return to India and re-engage financially.
The global income tax exemption for foreign experts working in India removes a major inconvenience for top global talent who are considering relocating to the country.The alternative minimum tax exemption for all non-residents is good news for foreign companies, especially contractors and service providers. Making spending on exploration for critical minerals tax deductible is a carrot for global mining companies. Other outreach includes lower tax rate on fund management and shifting treasury operations to GIFT City.
