Budget 2026 Strengthens India’s IT Sector with Unified Framework and AI Support

Mr. Sourabh Jalan, Chief Financial Officer, xoriant-solutions-pvt-ltd

“The continued support for AI and research-led innovation, combined with structural reforms in IT services taxation and transfer pricing, enhances long-term policy certainty. The move to treat software services, IT-enabled services, and contract R&D under a unified Information Technology Services framework with an expanded Safe Harbour regime reflects a mature recognition of the sector’s complexity and global role.

For digital engineering firms, there is unlock of downstream demand across cloud modernization, AI at scale, cybersecurity, and platform-led enterprise transformation. Collectively these measures enable the IT sector to move up the value chain while enhancing global competitiveness and firmly positioning the country not merely as a services exporter, but as a long-term global hub for technology capability and digital infrastructure.”

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