AI and Machine Learning

Transfer pricing overhaul and cloud incentives signal a push to reduce disputes and attract long-term digital infrastructure investment, says industry lobby

By scaling up component incentives and launching a new semiconductor mission, the government is signaling a shift from attracting assembly lines to anchoring deeper, more resilient electronics supply chains in India.

A tax holiday stretching to 2047 and looser transfer-pricing rules mark India’s boldest bid yet to turn data centers into the backbone of its AI ambitions.

Study estimates AI could unlock massive value across five foundational sectors, arguing India’s edge lies in disciplined, large-scale deployment rather than frontier model development.

Rather than chasing hyperscale models, India should deploy AI where it fits its capital base, labour market and institutional capacity, the Economic Survey 2025–26 says.