Page 25 - Policy Economic Report - March 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

? Bengaluru, Hyderabad, and Delhi-NCR/Noida have operational capacities of 182 MW, 152 MW,
and 76 MW, respectively.

? Four submarine cable systems are currently under being commissioned at various Cable Landing
Stations (CLS). Further, three submarine cable systems are under planning by various Telecom
Service Providers (TSP) for which applications have been submitted to DoT.

The policies of the Government of India are aimed at ensuring a safe, trusted and accountable
cyberspace with sufficient data storage capacity within the country. Recently, the Union Budget
2026-27 also included major policy initiatives to strengthen India's position as a global hub for digital
infrastructure. A tax holiday till 2047 was proposed for eligible foreign cloud providers using India-
based data centres for global operations in the budget.

Globally, data centres have emerged as a major driver of investment and economic activity.
According to the United Nations Conference on Trade and Development (UNCTAD), data centres
accounted for more than one-fifth of global greenfield project values in 2025, with announced
investments exceeding USD 270 billion. Rapid growth in AI compute demand and data-intensive
digital services is intensifying international competition to attract such infrastructure.

In this context, India's long-term tax framework aims to provide investment certainty, anchor high-
value digital infrastructure within the country, and strengthen India's role in global digital value
chains in line with the vision of Viksit Bharat by 2047.

10. India’s FY26 GDP Growth Forecast to 7.5% on Strong Domestic Demand- FITCH Ratings
Global credit rating agency Fitch Ratings has increased India’s GDP growth forecast for the financial
year 2025–26 (FY26) to 7.5%, citing strong domestic demand as the main driver of economic
expansion. The revised projection reflects confidence in India’s economic resilience despite global
uncertainties.

Earlier, Fitch had estimated India’s growth at 7.4%, but the latest outlook has slightly raised the
forecast due to improved consumption and investment activity within the country.

For next fiscal (2026-27), Fitch has revised upwards its growth estimate to 6.7 per cent, from 6.4 per
cent projected in December 2025. In its Global Economic Outlook — March 2026, Fitch projected
world GDP growth at 2.6 per cent in 2026 on the assumption that the Iran war does not result in a
larger or an enduring spike in energy prices that pushes the annual 2026 oil price forecast above
$70/barrel.

About India, Fitch said there are tentative signs that real activity is slowing in January and February,
but the economy remains resilient, and credit growth is still in double digits. Fitch expects growth to
slow in first half of FY 2026-27; with rising inflation constraining real incomes and limiting consumer
spending growth.

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