The Union Budget 2026 was praised by industry association Nasscom on Sunday for emphasizing technology as a key component of equitable, sustainable growth.

In her ninth straight budget, FM Nirmala Sitharaman offered a consultative and forward-thinking plan that strengthens the relationship between the government and business.

“The Budget reflects a continued focus on ease of doing business and on strengthening India’s position as a global technology and services powerhouse under the Viksit Bharat vision, with technology positioned as a core driver of inclusive and sustainable growth,” Nasscom stated.

According to the industry association, the rationalization of the international taxes and transfer pricing framework, as well as the obvious application of tax policy as a competitive lever, are significant advantages for the technology sector.

Additionally, Nasscom applauded the Budget for being in line with long-standing industry priorities that have been continuously expressed through ongoing engagement and input.

“Access to certainty mechanisms for routine cross-border IT service models is materially expanded by the consolidation of software development services, IT-enabled services, KPO, and contract R&D related to software development into a single category of information technology services with a uniform safe harbour margin of 15.5% and the enhancement of the Safe Harbour eligibility threshold from Rs 300 crore to Rs 2,000 crore,” the report stated.

The enhancement of the Advance Pricing Agreement structure was also praised by Nasscom.Long-standing issues with timeliness and access to certainty are directly addressed by the Budget’s plan to expedite unilateral APAs for IT services, with an aim to conclude them within two years and a restricted extension window, it stated.

Additionally, the Budget strengthens India’s cloud and digital infrastructure ecosystem through a significant involvement.

The industry body stated, “The proposal for a tax holiday until 2047 for foreign companies offering cloud services to customers worldwide using data center services from India, with services to Indian customers routed through an Indian reseller entity, sends a clear signal to attract long-term global investment and support the expansion of India’s compute capacity.”

The introduction of the India Semiconductor Mission 2.0 and the increased investment of Rs 40,000 crore for the Electronics Components Manufacturing Scheme are two examples of the ongoing emphasis on developing domestic capability in strategic technologies that Nasscom applauded.

Nasscom stated that the “Union Budget 2026 sets a clear direction by aligning policy certainty with digital and manufacturing capability” and that these actions indicate a more developed policy approach that centers India’s long-term competitiveness around technology, digital infrastructure, and tax certainty.