Sector brief 01 of 08
Technology & SaaS
Software, IT services and data centres take 100% FDI without prior approval. The live questions are the operating model, STPI or SEZ registration, data-protection dates, tax presence and which central and state schemes still accept applications.
In this brief
Everything in this sector brief
11 pages, from the market case to the set-up roadmap and every incentive with its status.
Technology and SaaS
Software, IT services and data centres take 100% FDI without prior approval. The live questions are the operating model, STPI or SEZ registration, data-protection dates, tax presence and which central and state schemes still accept applications.
ReadRecent foreign investments in technology
Amazon, Microsoft and Google have announced about USD 67.5 bn for India. These are announced commitments, not completed investments; amounts and periods are as reported and spending is phased.
ReadFDI rules for technology and SaaS
Software, IT services and data centres are open to 100% foreign ownership under the automatic route. Conditions arise mainly in telecom, e-commerce, digital news and for investors from land-border countries.
ReadRegulators and registrations: technology
Export units register with STPI or an SEZ; data-protection and online-gaming rules also apply. Timelines vary by authority and case; incorporation and FDI reporting are covered in the general set-up pages.
ReadCentral incentives for technology
AI compute, R&D finance and chip-design support are the main central levers; export-unit schemes, a start-up tax holiday and hiring support also apply. Terms are summarised; notified guidelines govern eligibility and payment.
ReadState incentives for technology
Five states with published IT/ITeS or R&D incentives. Amounts are ceilings; eligibility, zones and disbursal schedules are set by each policy. Karnataka and Telangana also offer technology incentives not summarised in the source.
ReadTax and zones for technology
A data-centre exemption to March 2047 and an IT-services safe harbour of 15.5% shape tax planning for technology groups. Rates below are for tax year 2026-27, the first year under the Income-tax Act 2025.
ReadSet-up roadmap for technology companies
From entry decision to first export invoice in ten steps: operating model, FDI route, STP or SEZ, IEC and GST, transfer pricing, DPDP, state and central schemes, ELI and the cloud-seller notification. Entry vehicles and incorporation follow.
ReadWhat to watch: technology and SaaS
Data protection, tax presence and ownership tests drive compliance risk for technology investors. Each item below sets out the rule as of 1 October 2026 and what it means for a foreign group.
ReadRecent changes: technology and SaaS
A timeline of the rule changes since 2025 that matter most to software, SaaS, cloud and e-commerce investors, from the end of the equalisation levy to export inventory for marketplaces.
ReadSources: technology and SaaS
The full reference list behind the technology and SaaS pages, as of 1 October 2026. Secondary sources (press and adviser alerts) are marked; confirm figures against the primary document before relying on them.
ReadUpdates
Recent changes
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Planning your move into India?
Talk to IMC about your entry structure, approvals, incentives, tax and the first year of compliance.