New Delhi, February 15 With the budget providing incentives to boost investment in data centers, Prime Minister Narendra Modi on Sunday pitched India as a global hub for digital infrastructure and artificial intelligence, saying the country is ready to host the world's data and lead the next wave of the technology revolution.
"The tax incentives announced in the budget are designed to accelerate investment in this area, reduce the cost of building advanced facilities, and position India as a globally competitive destination for data infrastructure," Modi said in an exclusive interview to PTI.
In a strong global outreach message, the prime minister said, "We invite all the world's data to reside in India!"
In the recently unveiled budget for the financial year starting April, Finance Minister Nirmala Sitharaman has announced that companies like Amazon, Google, and Microsoft could receive a tax holiday until 2047 on global cloud revenues if they route foreign workloads through Indian data centers.
Furthermore, data center services are now eligible for coverage under the Safe Harbour Rules, with a 15% margin, as the 2026-27 budget aims to attract AI investment, boost infrastructure and jobs, while managing competition, data protection, and enforcement risks.
Modi emphasized the importance of data centers. "When we think about technology, we often focus on what is visible, such as applications, platforms, and devices. But equally important are the foundational layers that make all of these things possible. Data centers are one such critical layer," he said.
Linking this to AI, the prime minister said, "The importance of this becomes even more apparent when we look at the domain of artificial intelligence. AI needs computing power and data center infrastructure. By expanding capacity today, we are laying the foundations for a thriving Indian AI ecosystem."
Recognizing this potential, major investments have already been announced in this area by international and Indian companies in recent times.
"The tax incentives announced in the budget are designed to accelerate investment in this area, reduce the cost of building advanced facilities, and position India as a globally competitive destination for data infrastructure. This will also result in a massive number of jobs for our youth," Modi said in the written interview.
In a strong pitch to global investors, the prime minister added: "We invite all the world's data to reside in India!"
This pitch came a day before India hosts the global assembly of tech tycoons, AI business leaders, policymakers, investors, and innovators. The Global AI Impact Summit, to be held in New Delhi from February 16 to 20, will see the presence of heads of state and government, including France's Emmanuel Macron and Brazil's Luiz Inácio Lula da Silva, along with representatives of more than 60 other countries.
Modi said India must move beyond digital adoption to digital leadership, arguing that in a technology- and data-driven world, leadership, and not mere participation, will determine inclusion, competitiveness, and growth.
"The world has been undergoing significant shifts in its technological landscape. Now, nations cannot be content with just digital adoption but must also aspire to digital leadership. As we saw in the digital payments space, only with digital leadership will digital inclusion become possible," he said.
Drawing a historical contrast, the prime minister added: "During the Industrial Revolution, we were left behind due to colonization. During the earlier manufacturing revolution, we were left behind due to neglect by post-independence governments. But now, in this technological and data-driven revolution, it is important that we take the lead."
He said India's scale and diversity give it a unique advantage.
"India, with a population of 140 crore people, is one of the world's largest generators and consumers of data. We are one of the most diverse nations in the world, and our data reflects this diversity. Such a massive and diverse data pool has great potential only when it can be leveraged safely and productively. So, we are paying attention to every aspect of the data ecosystem, including security, skills, software, and infrastructure," the prime minister said.
On safeguards, he pointed to the Digital Personal Data Protection Act, 2023.
"For security, we have brought in the digital personal data protection law to build a safe, secure, privacy-protecting, rights-based framework that empowers citizens," he said.
Modi said India's strength in talent and software is already recognized globally.
"As for skills and software, the talent of Indian youth in the data science space is world-renowned," he asserted.
