By Erick Yesterday (February 01st, 2026) our Finance Minister presented the Union Budget. If you want to see the full list of highlights, see here. If you want to see the tech related highlights, see below. I listed them out so you don’t have to.
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- India Semiconductor Mission (ISM) 2.0 to be launched to produce equipment and materials, design full-stack Indian IP, and fortify supply chains with focus on industry led research and training centres to develop technology and skilled workforce.
- The Electronics Components Manufacturing Scheme outlay increased to ₹40,000 crore (from what is currently ₹29,000 core).
- Supporting IT sector as India’s growth engine
- Software development services, IT enabled services, knowledge process outsourcing services and contract R&D services relating to software development to be clubbed under a single category of Information Technology Services with a common safe harbour margin (pre-approved, minimum profit markup set by tax authorities for specific intercompany transactions, such as IT services or loans) of 15.5 percent.
- The threshold for availing safe harbour for IT services to be enhanced from 300 crore rupees to 2,000 crore rupees.
- Safe harbour for IT services shall be approved by an automated rule-driven process, can be continued for a period of 5 years at a stretch.
- Unilateral Advanced Pricing Agreement (APA) process for IT services to be fast-tracked with the endeavour to conclude it within a period of 2 years, which can be extended by 6 months on taxpayer’s request.
- The facility of modified returns available to the entity entering APA to be extended to its associated entities.
- Any foreign company that provides cloud services to customers globally by using data centre services from India to be provided Tax holiday till 2047.
- A safe harbour of 15 percent on cost to be provided if the company providing data centre services from India is a related entity.
- Support for the the Indian Institute of Creative Technologies, Mumbai in setting up AVGC (Animation, Visual Effects, Gaming and Comics) Content Creator Labs in 15,000 secondary schools and 500 colleges
That’s…. it. Thank you.