![\"\"](\"https:\/\/www.allieddigital.net\/us\/wp-content\/uploads\/2026\/02\/Authored-by-Kapil-Mehta.png\")
\nAuthored by Kapil Mehta, CFO & COO (US)<\/p>\n
\nAuthored by Kapil Mehta, CFO & COO (US)<\/p>\n
For years, India has been central to global IT services.
\nTalent and scale were never the issue.<\/p>\n
What held many US and European companies back was certainty \u2014 especially around long-term tax and pricing outcomes.<\/p>\n
India's Union Budget 2026 materially changes that.<\/p>\n
This Budget is not about incentives or subsidies. It is about removing friction from cross-border IT services and positioning India as predictable digital trade infrastructure.<\/p>\n
What changed?<\/strong> In simple terms, India is aligning its IT services framework with how global trade actually works: predictability first.<\/p>\n We are a US-based global IT services company with a listed parent entity in India. In this new policy environment, that positioning becomes a clear advantage for US based companies.<\/p>\n What this means for them:<\/strong> The Budget also signals India\u2019s ambition to become a global hub for cloud, AI, and data-center-led services. As AI and cloud workloads increasingly serve global users, infrastructure location becomes a strategic trade decision \u2014 not just an IT one.<\/p>\n What this means:<\/strong> European companies<\/strong> \u2014 Reduced audit subjectivity makes India viable for regional or global digital hubs. Global IT services are no longer about where talent is cheapest. India has moved decisively in that direction. <\/p>\n","protected":false},"excerpt":{"rendered":" \nAuthored by Kapil Mehta, CFO & COO (US)<\/p>\n For years, India<\/p>\n","protected":false},"author":1,"featured_media":6475,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[161],"class_list":["post-6471","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-161"],"yoast_head":"\r\n
\n\u2022 Expanded Safe Harbor rules now cover much larger IT operations
\n\u2022 Standardized margins under a unified IT services category
\n\u2022 Rule-based, automated acceptance, reducing subjectivity
\n\u2022 Multi-year pricing certainty, enabling long-term planning
\n\u2022 Faster pathways for Advance Pricing Agreements for large global players<\/p>\n
\n\u2022 US-centric contracting and accountability
\n\u2022 India delivery backed by public-company governance and controls
\n\u2022 Lower long-tail risk from transfer-pricing disputes
\n\u2022 Ability to scale India operations with confidence, not caution<\/p>\n
\nUS companies<\/strong> \u2014 India delivery is now more board-defensible.
\nAre your India risk assumptions still valid?<\/p>\n
\nCould certainty unlock scale you previously avoided?<\/p>\n
\nThey are about where operations are predictable, scalable, and defensible.<\/p>\n
\nThe question is: has your global delivery strategy caught up?<\/p>\n