The rally followed Finance Minister Nirmala Sitharaman's announcement of a major tax initiative to position India as a global hub for cloud services. Under the proposal, any foreign company providing cloud services to customers worldwide using data centre infrastructure located in India will be eligible for a tax holiday extending up to 2047.

In addition, the government announced a safe harbour margin of 15% on cost for data centre services provided from India by related entities, offering greater tax certainty for multinational groups.