New Delhi, Feb 1 (NationPress) The industry association Nasscom expressed its approval of the Union Budget 2026 on Sunday, praising the emphasis on technology as a fundamental driver for inclusive and sustainable growth.

The Finance Minister, Nirmala Sitharaman, in her ninth consecutive Budget, introduced a visionary and consultative document that strengthens the collaboration between the government and the industry.

According to Nasscom, “The Budget showcases a sustained commitment to improving the ease of doing business, reinforcing India’s stature as a global technology and services leader in line with the Viksit Bharat vision, with technology at the heart of inclusive and sustainable growth.”

One significant positive for the technology sector is the streamlining of the international taxation and transfer pricing framework, underscoring tax policy as a competitive advantage.

Nasscom also welcomed the Budget's alignment with long-standing industry goals achieved through ongoing dialogue and consultation.

“The integration of software development services, IT-enabled services, KPO, and contract R&D for software development into one category of Information Technology services with a consistent safe harbour margin of 15.5% and the increase of the Safe Harbour eligibility threshold from Rs 300 crore to Rs 2,000 crore significantly broadens the access to certainty mechanisms for routine cross-border IT service models,” it stated.

The association also commended the enhancement of the Advance Pricing Agreement framework.

“The proposal to expedite unilateral APAs for IT services, aiming for completion within two years and a limited extension window, directly addresses longstanding issues regarding timelines and certainty access,” Nasscom remarked.

Furthermore, the Budget introduces key initiatives to bolster India’s cloud and digital infrastructure ecosystem.

“The plan for a tax exemption until 2047 for foreign firms offering cloud services globally using Indian data centre services, with Indian customer transactions routed through an Indian reseller, sends a strong message to attract long-term foreign investments and enhance India’s computing capacity,” the industry body noted.

Nasscom also applauded the ongoing focus on developing domestic capabilities in strategic technologies, including the launch of the India Semiconductor Mission 2.0 and a boosted budget of Rs 40,000 crore for the Electronics Components Manufacturing Scheme.

“These initiatives indicate a more sophisticated policy approach that positions technology, digital infrastructure, and tax certainty at the forefront of India’s long-term competitiveness,” Nasscom stated, adding that the Union Budget 2026 clearly sets a direction by aligning policy certainty with digital and manufacturing capabilities.