Andhra CM Naidu proposes major tax and copyright reforms to boost AI-driven data cities and attract global cloud investments. He calls for removing legal barriers that increase costs for foreign tech firms and hinder AI model training. The vision includes turning smaller cities into digital hubs, positioning Andhra Pradesh as a future tech powerhouse.
Andhra Pradesh’s Chief Minister, N. Chandrababu Naidu, has unveiled an ambitious push to reshape India’s legal and economic frameworks to fuel the rise of AI-powered data cities. In a bold proposal to the central government, he’s calling for tax and copyright reforms aimed at unlocking global cloud investments and expanding tech innovation beyond metros.
Naidu specifically urged changes to Section 9(1)(i) of the Income Tax Act, which currently categorizes cloud service providers’ data centers as “permanent establishments,” triggering higher tax burdens. By removing this clause, India could reduce legal friction and position itself as a global hub for AI infrastructure. He also proposed amending Section 52 of the Copyright Act to allow unrestricted use of text and data for training AI models.
Beyond legal tweaks, Naidu envisions tax exemptions for tier-3 cities and rural zones to spark remote work ecosystems and shared workspaces. His broader goal: turn Andhra Pradesh into a magnet for deep-tech talent and next-gen digital architecture—making it not just a player, but a leader in the AI-first future.