India Union Budget 2026 - Key Updates IT/ITeS and GCC Sector

The Union Budget 2026–27 builds on India’s technology-led growth agenda, addressing long-standing industry concerns while adapting to evolving global business and operating models. With continued emphasis on ease of doing business, investment facilitation, and workforce mobility, the Budget reinforces confidence in India’s position as a resilient and scalable global technology hub.
 
For the IT/ITeS and Global Capability Centre (GCC) sector, the Budget introduces a range of targeted policy and tax measures aimed at supporting capability-driven growth. Key proposals include long-term tax certainty for foreign companies procuring data centre services from India, rationalisation of MAT provisions, re-evaluation of Safe Harbour rules with higher thresholds and uniform margins for IT services, and faster resolution through Advance Pricing Agreements. On the indirect tax front, proposed GST amendments, particularly the removal of ‘intermediary services’ from place of supply provisions, are expected to reduce litigation for IT/ITeS exporters and restore zero-rating benefits, while enhanced customs automation is set to ease the import of critical technology infrastructure.
 
Overall, these measures align with the sector’s structural shift towards higher-value services, deeper GCC integration, and geographic expansion beyond metros.
 
The Union Budget 2026–27 underscores the government’s intent to support innovation-led, export-oriented growth, while strengthening India’s role in global value chains.

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