Nirmala Sitharaman, the Indian Finance Minister, presented Budget 2026-27 on February 1, 2026. It promises significant tax benefits for nonresident investors operating in specific sectors of the economy. Jairaj Purandare, the Chairman of JMP Advisors Pvt. Ltd., Mumbai, Bhakti Shah, a Director of JMP Advisors Pvt. Ltd. in Mumbai, and Siddhita Desai, a Senior Associate at JMP Advisors Pvt. Ltd., Mumbai, take a deep dive into the budget. Highlights include (i) expansion of the preferential time periods for I.F.S.C. and O.B.U. tax benefits, (ii) an exemption for income of a foreign company that arises in India from procuring services from a specified data center in India, (iii) an exemption for income of foreign companies arising from the provision of capital goods, equipment, or tooling to a contract manufacturer in India, (iv) an exemption for overseas income of a nonresident individual for five consecutive tax years where the nonresident visits India for the first time to render services under an approved program, (v) the adoption of a unified 15.5% safe harbor in the Indian transfer pricing rules for providing information technology services with a cap of U.S.$2.2 billion, and (vi) expansion of the benefit of an A.P.A. to cover affiliates of the taxpayer that applied for the A.P.A.