New Delhi, Aug 4: The Government of India has introduced the Taxation and Other Laws (Amendment) Bill, 2026 in the Lok Sabha, aimed at attracting foreign investment, strengthening India’s manufacturing ecosystem and creating a more business-friendly tax environment.
Finance Minister Nirmala Sitharaman introduced the Bill, which proposes measures to provide greater policy certainty, simplify tax procedures and encourage global companies to expand their operations in India.
The proposed legislation focuses on improving ease of doing business by offering clearer and more predictable tax treatment for foreign investors, investment funds, cloud service providers and infrastructure companies.
The Bill seeks to make India more attractive for global fund managers by simplifying eligibility conditions while maintaining safeguards against misuse of tax provisions. It also proposes measures to encourage investment through business trusts such as REITs and InvITs, supporting growth in the real estate and infrastructure sectors.
To accelerate India’s digital infrastructure development, the Bill includes provisions aimed at attracting global cloud companies and supporting the expansion of data centres, including future investments linked to artificial intelligence infrastructure.
A major focus of the proposed reforms is boosting electronics manufacturing. The Bill provides extended tax certainty for foreign companies supplying machinery, equipment and components to Indian manufacturing units, helping strengthen domestic production networks for products such as mobile phones, laptops, servers and other electronic goods.
The legislation also proposes tax benefits for companies storing electronic components in Indian bonded warehouses for supply to local manufacturers, with the objective of making India a more competitive destination for global supply chains.
In another key measure, the Bill seeks to promote India as a global rough diamond trading hub by providing tax incentives for foreign diamond miners and traders operating through designated zones.
The government said the proposed reforms are part of its broader strategy to attract global capital, promote manufacturing-led growth and strengthen India’s position in the international investment landscape.
The Bill is expected to provide long-term confidence to investors while supporting economic expansion, employment generation and the growth of emerging industries.