Page 36 - NIS English 16-28 Feb, 2026

COVER STORY BUDGET
UNION

2026-27

Engine of Growth

Emerging

Technologies and

Digitalization

India is not only the world’s third-largest
startup ecosystem but also among the leading
exporters of mobile phones. The government
has taken several steps to support new
technologies through initiatives such as
the AI Mission, National Quantum Mission,
Anusandhan National Research Fund, and
Research, Development, and Innovation Fund.
Several steps have been made in budget...

₹40,000 crore is the budget for the
electronic components
manufacturing scheme
15.5% uniform safe harbor margin will apply,
and there will be a single category for all
information technology services.

n India is a leader in software development, IT-enabled
services, knowledge process outsourcing services,
and research and development services related to
software development. Now, all these services will Two major announcements
be brought under a single category of Information have been made in the
Technology Services, and a uniform safe harbor
margin of 15.5% will be applied. Semiconductor Mission that
n The threshold for availing safe harbor for IT services will improve India Stack
is being increased from ₹300 crore to ₹2000 crore. and intellectual property-
n Approval for safe harbor for IT services will now related matters. The ₹40,000
be automatic. No tax officer will be required to
scrutinize and approve the applications. crore electronic components
n Once an IT service company applies for this, the manufacturing scheme is a
same safe harbor can be continued for a period of 5 major boost towards making
years at the company's discretion.
n A proposal to expedite the unilateral Advance Pricing electronics self-reliant.
Agreement process for IT service companies wishing
to enter into an APA, which will be attempted to be Nirmala Sitharaman,
completed within a period of 2 years. This can be Union Finance Minister
extended up to a maximum of 2 years.

34 NEW INDIA SAMACHAR || February 16-28, 2026