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| Government Policy and Engagement Monthly Mailer |
| March 2026 | Volume 8, Issue 3 |
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| Nasscom's feedback on Draft Central Rules for the Labour Codes |
On February 13, 2026, Nasscom submitted detailed comments on the draft central rules under four labour codes, viz., the Industrial Relations Code, 2020 (IR Code), Code on Social Security, 2020 (COSS), Code on Wages, 2019 (COW), and Operational Safety, Health and Working Conditions Code, 2020 (OSHWC Code) to the Ministry of Labour and Employment. The representation highlighted industry concerns and provided recommendations for the central draft rules. A code-wise summary of the same is given below: - IR Code: Operational considerations of GRC, and Manner of utilisation of reskilling fund.
- COSS: Concerns regarding wage definitions and gratuity transition, Rationalising pre-deposit for appeals determining damages under section 128, aggregator contribution provisions, and information in form XXIII.
- COW: Prescribing a reasonable timeline for payment of wages under section 17(3), Nomination for right to receive the amount in case of death of the employee, Responsibility for payment of minimum bonus, and ensuring alignment between labour codes and certain draft Rules.
- OSHWC Code: Explanation for clarity in wages for overtime, Removal of certain information in format of appointment letter, ensuring alignment between labour codes and certain draft rules in case of contract labour.
Nasscom has also recommended removal or modification of certain rules, while reaffirming industry's commitment to constructive implementation of the labour reforms. Read More |
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| MOF | Nasscom Submits Post-Budget Feedback to Strengthen Data Centre and Tax Framework |
| On March 03, 2026, Nasscom submitted its post-Union Budget implementation feedback to MOF. The Ministry of Finance. The submission recommended clarifying the definition of data centre services, addressing unintended effects of the reseller routing conditions, and replacing "users located in India," with "customers", and removal of ambiguities around operational control of data centre infrastructure. Nasscom also suggested administrative clarifications on group operating models, coverage of existing data centres, and recognition of lease/colocation arrangements. Beyond the CSP, data centres, Nasscom has suggested improved clarity on aligning startup tax eligibility thresholds under the Income Tax Act with the DPIIT schemes, revised tax return fee triggers, introduction of statutory safeguards allowing relief in cases where a taxpayer can demonstrate a genuine "reasonable cause" for the delay and implementation guidance for integrated penalty provisions to ensure smoother and more predictable tax administration. (Read more) |
| MEITY | Nasscom feedback on the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2026 |
| On February 20, 2026, Nasscom submitted its feedback to MeitY stating that several of our key recommendations have been reflected in the notified amendments, including flexibility in labelling synthetically generated information, recognition of technical feasibility in provenance requirements, carve-outs for routine and good-faith edits, and alignment with the existing due-diligence framework under the IT Rules, 2021. However, the rules introduce certain new changes to timelines under the core due-diligence framework that were not part of the earlier draft consultation. Additionally, the notified Rules came into force on February 20, 2026, providing a transition period of only ten days. To ensure a smooth transition, we propose a phased enforcement approach. (Read More) |
| DPIIT | Nasscom Submission on the Working Paper on Copyright and Generative AI |
| On February 06, 2026, Nasscom submitted its response to DPIIT's Working Paper I on Copyright and Generative AI. The Committee's Working Paper presents two paths: majority view as mandatory licensing with centralised royalty distribution, or dissenting view in the form of text and data mining exception with opt-out rights. Both aim to balance creator compensation with AI innovation. Both are largely untested at the scale required for generative AI. |
| Nasscom's position is that the choice between these models must be grounded in evidence. Our submission flagged the absence of a baseline assessment of India's existing licensing landscape, possible challenges with royalty rate-setting and distribution under a centralised mechanism, limited reach of opt-out mechanisms to individual creators, and the systemic barrier of poor metadata across both models. Drawing on the UK's approach of constituting technical working groups before legislating, we have recommended that DPIIT publish all consultation responses (appropriately redacted for commercial confidentiality) and constitute domain-specific expert committees to deliver technical feasibility assessments, cost-benefit analyses, and implementation roadmaps within six months, before choosing between the two models. (Read more) |
| MWCD | Nasscom's feedback on the operational challenges with the SHe-Box Portal |
| On February 04, 2026, Nasscom submitted an industry representation highlighting operational challenges in utilising the SHe-Box portal, launched by MWCD to strengthen workplace safety and POSH compliance. Companies with pan-India operations face difficulties in registering multiple offices due to the restriction of unique nodal officer for each location and restriction on Internal Committee members from being designated as nodal officers. Nasscom stated that assigning multiple nodal officers may raise confidentiality risks in handling sensitive POSH complaints, hence Internal Committee members be allowed to handle cases end-to-end as they are already trained, authorised, and experienced in managing such POSH cases with sensitivity and confidentiality. Nasscom has reiterated industry's commitment to women safety at workplace and called for a collaborative dialogue to for smooth operationalisation of the portal. Read More |
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| State Government |
| Karnataka | Sector-Wise Rates for Welfare Fee contribution for aggregators |
| On February 18, 2026, the Government of Karnataka has notified sector-wise welfare fee rates under the Karnataka Platform Based Gig Workers (Social Security and Welfare) Act, 2025 and the Karnataka Platform Based Gig Workers (Social Security and Welfare) Rules, 2025, mandating immediate payment by covered platforms and aggregators. A 1% levy on final payouts to gig workers, subject to category-wise caps across ride-hailing, delivery, logistics, e-marketplace, and professional services, has been prescribed, with quarterly self-reporting permitted until the PWFVS becomes operational Read More |
| Uttar Pradesh | Nasscom facilitated industry consultation on State Motor Vehicle Aggregator guidelines with special focus on bike taxis |
| On February 03, 2026, Nasscom facilitated an industry consultation with the Transport Commissioner, Department of Transport, on state MVAG with special focus on bike taxis in the state. Representatives from the industry highlighted the significance of bike taxis on the employment generation in the state, the role of bike taxis in the state-wide last mile connectivity, and complementary to the mobility ecosystem including public transport, and the role of low-friction model in creating scalability and sustainability of bike taxi operations in the state. The industry assured the required support for the smooth and practical implementation of MVAG in the state. |
| For more information, please contact Prakash Gupta at prakash@nasscom.in |
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| Nasscom joined to release a NITI Aayog report on Future of Tech Services |
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| On February 12, 2026, the Minister of Commerce & Industry Piyush Goyal, released a NITI Aayog report titled Technology Services - Reimagination Ahead. Dignitaries participating in the release event included S Krishnan, Secretary, MEITY, Nidhi Chhibber, DG (DMEO), Debjani Ghosh, Distinguished Fellow, NITI Aayog and Sangeeta Gupta, Senior Vice President, Nasscom. Nasscom worked as a knowledge partner on this report with Niti Ayog. The report provides a 10-year roadmap of India's $265 Billion technology services sector to scale to $750-850 billion by 2035. The roadmap spotlights that artificial intelligence marks a structural shift in the industry: value will move from labour-arbitrage services toward IP-led, outcome-oriented, and platform-driven delivery models. India now has the opportunity to evolve from services leadership to global leadership in building AI-native systems. Please access the report here. |
| India AI Impact Summit 2026 |
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| The India AI Impact Summit 2026, held from February 16-21, 2026, marked a major milestone in the global AI landscape. The Summit saw unprecedented engagement, with nearly 6 lakh in-person participants and over 9 lakh cumulative views through live virtual streaming. Delegations representing more than 100 countries and 20 international organisations took part in discussions and deliberations. Building on the seven key focus areas identified by the Government, Nasscom played a key role in advancing industry-led dialogues at the Summit by convening a series of focused sessions aligned with the Summit's core themes. These sessions brought together global technology leaders, startups, policymakers, and domain experts to explore practical pathways for responsible AI adoption, talent development, policy governance and innovation at scale, translating the Summit's guiding principles into actionable industry insights. For details of these sessions along with their recordings: Read more |
| Expert Engagement Group on New Deal for Data established by the Government of India |
| Nasscom participated in the Expert Engagement Group (EEG) on "New Deal for Data". EEG, established by the Government of India, as a platform for non-government stakeholders to contribute evidence-based insights and recommendations to the AI Impact Summit proceedings. The group deliberated on the limitations of the current approaches to data governance, as they seemed out of sync with the demands of Al. Current data protection frameworks limit the collection of personal data to only as much as is required for a specified purpose, and require that such data is retained for no longer than is necessary to serve that purpose. The Expert Engagement Group on the New Deal for Data is focused on defining the contours of what such a model of data governance might be. To that end, on February 12, 2026, Ashish Aggarwal, Vice President and Head of Public Policy at Nasscom, shared industry's perspective to the EEG. |
| Nasscom contributed to a workshop on Democratising Access to AI through Data Infrastructure | Models, Governance, and Market Design |
| On February 16, 2026, Ashish Aggarwal, Vice President and Head of Public Policy at Nasscom contributed to the workshop on "Democratising Access to AI through Data Infrastructure". The workshop was organised by Vidhi Legal as part of the AI Impact Summit 2026 in New Delhi. The workshop focused on designing data-sharing ecosystems to support AI-driven public solutions through different case scenarios, particularly in domains requiring multi-source datasets (satellites, government, and private entities). |
| Nasscom participated in the roundtable discussion on AI Governance and Skilled Workforce |
| On February 17, 2026, Ashish Aggarwal, Vice President and Head of Public Policy at Nasscom participated in the roundtable discussion on "Delivering Effective AI Governance and Assurance through Skilled Workforces" organised by ISACA as a part of AI Impact Summit 2026 in New Delhi. During the discussion, he emphasised on rapid adoption of AI across sectors and the increase in the need for investment in governance and risk management capabilities and the high demand for skilled professionals in AI audit, security, and AI risk assessment. While highlighting the collaboration between ISACA and Nasscom's Sector Skills Council, Nasscom underscored the need for many such collaborations to strengthen AI governance competencies in India. |
| Nasscom participated in the panel discussion on AI Ready Organisations |
| On February 13, 2026, Ashish Aggarwal, Vice President and Head of Public Policy at Nasscom participated in the panel discussion on "Building an AI-ready organisation" at an event organised by Economist Intelligence Corporate Network in New Delhi. The discussion focused on data, computing, infrastructure, risk, and talent required to build AI-ready enterprises. |
| CBDT | Nasscom Industry Delegation Meeting with CBDT on Union Budget 2026 Announcements |
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| On February 09, 2026, Nasscom, along with an industry delegation interacted with the CBDT to discuss the positive announcements made in the Union Budget 2026 and the way forward. The meeting was chaired by Ravi Agrawal, Chairman CBDT and the government participants included Prasenjit Singh, Member (Legislation), Pankaj Jindal, Joint Secretary (TPL-I), Pitambar Das, Joint Secretary (TPL-II), Vinay Kumar Singh, Joint Secretary (FT & TR-I), Bhasker Goswami, Joint Secretary (FT & TR-II) and Monica Bhatia, Principal Chief Commissioner of Income Tax (International Taxation), Delhi. The Nasscom delegation led by Ashish Agarwal, Vice President and Head of Public Policy, comprised of leaders from IT-ITeS companies, data centre operators, and GCCs. |
| DOC | Stakeholder Consultation on WTO Customs Moratorium on Electronic Transmissions |
| Nasscom participated in a stakeholder consultation convened under the chairmanship of Rajesh Agrawal, Secretary, DOC, on February 27, 2026, at Vanijya Bhawan, New Delhi, to deliberate on India's position regarding the moratorium on customs duties on electronic transmissions at the upcoming 14th WTO Ministerial Conference scheduled in March 2026. The meeting discussed the implications of the moratorium on e-commerce and digital trade, as well as India's concerns around preserving policy space and the issues related to consensus among WTO members on the scope of electronic transmissions. Nasscom represented by Ashish Agarwal, Vice President and Head of Public Policy, shared industry perspectives and engaged in discussions on potential scenarios and strategic considerations as India prepares for deliberations at MC14. |
| Nasscom Post Budget Sessions |
| A. Webinar for GCCs for Union Budget 2026-27 announcements |
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| Nasscom on February 12, 2026, conducted a webinar for GCCs to demystify the key announcements made in the Union Budget 2026-27 and their implications for IT/ITeS operating models in India. The session was led by Ashish Agarwal, Vice President and Head of Public Policy and Kritika Murugasen, Senior Director, GCC & Talent. It was joined by our experts Rohit Jain (Partner, BSR Affiliates) and Suchint Majumdar (Partner, Deloitte). It saw participation of nearly 125 GCCs and provided an overview of major policy developments, including the expansion and simplification of the Safe Harbour regime for IT services, the increase in eligibility threshold to ₹2,000 crore, automated entry mechanisms, the five-year certainty window, and the interaction between Safe Harbour and APAs. The webinar also discussed new tax incentives aimed at promoting India as a global data centre and cloud services hub, as well as policy measures supporting GCC and financial services operations in GIFT City, highlighting their potential to strengthen India's role as a global digital and services delivery destination. |
| For more information, please reach out at policy@nasscom.in |
| B. CFO virtual Round Table on Labour, Tax and Union Budget 2026-27 announcements |
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| Nasscom convened an interactive CFO Roundtable on February 12, 2026, led by Ashish Agarwal, Vice President and Head of Public Policy, Nasscom, with participation from finance leaders of 30+ IT-ITeS companies to discuss the implications of the Union Budget 2026-27 announcements and issues related to Labour for the sector. The roundtable featured expert insights from DP Nagendra Kumar (Senior Advisor, Deloitte India), Mahesh Jaisingh (Partner Indirect Taxation, Deloitte), Suchint Majumdar (Partner, Deloitte), and Nidhi Kansal (Partner, BSR affiliates). Discussions covered key developments including the expansion of the Safe Harbour regime for IT services, increase in the eligibility threshold to ₹2,000 crore, automated entry mechanisms, and faster timelines for Advance Pricing Agreements (APAs), along with tax incentives for data centre-led digital service delivery and GCC operations in GIFT City. Participants also deliberated on broader tax administration reforms such as reduction in pre-deposit requirements for appeals, provisions on immunity for misreporting, changes to buyback taxation, and MAT-related developments, and their implications for tax certainty and ease of doing business for the IT/ITeS sector. |
| The roundtable also had a segment on the key changes and updates on the labour codes. The discussion was focused on changes to the definition of wages, and its implications on the salary structure. The discussion featured insights from experts like Swarnima (Partner, Trilegal). |
| For more information, please reach out at policy@nasscom.in |
| Roundtable on Scale + Sophistication | Shaping Policy and Ecosystem with the Global GCC Mandate |
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| on February 24, 2026, a closed-door roundtable with GCCs was moderated by Ashish Agarwal, Vice President and Head of Public Policy, Nasscom to discuss policy priorities shaping the next phase of India's GCC ecosystem. Conversations focused on the recent Union Budget announcement on Safe Harbour and APA providing fiscal certainty, enabling predictable tax outcomes and supporting long-term investment horizons. The discussion also emphasised the importance of clarity around digital infrastructure costs, evolving labour frameworks, and state-level policies to enable flexible talent models and expansion into emerging hubs. The discussion underscored that aligning cost clarity, talent availability, and enabling regulatory frameworks will be key to sustaining India's leadership and unlocking the next phase of GCC ecosystem growth. |
| Nasscom GCC Monthly meet for West Region |
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| On February 26, 2026, the membership team along with the policy team organised a customised session for GCCs present in Maharashtra region to discuss recent policy developments and their practical implications for operations. The discussion highlighted the evolving GCC ecosystem with a specific focus on Maharashtra and state-level priorities for various other states focusing on GCCs. The session also provided updates on the strategic impact of recent Budget announcements for GCCs, including reforms on Safe Harbour and APA. A detailed discussion was also held on the new labour codes and the emerging regulatory framework for GCCs. |
| Discussion on Next Generation Procurement at Global Procurement Summit 2026 |
| On February 04, 2026, Ashish Aggarwal, Vice President and Head of Public Policy at Nasscom participated in the panel discussion on "Procurement for the Next Generation" at a Global Procurement Summit 2026 organised by All India Management Association (AIMA) in collaboration with the World Bank. The discussion focused on digital transformation, policy frameworks, and technology-enabled procurement ecosystems. The growing role of digital procurement platforms, data analytics, and automation in improving efficiency and transparency was emphasised. |
| Times of India (ToI) Budget Dialogue 2026 |
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| On February 03, 2026, Ashish Aggarwal, Vice President and Head of Public Policy at Nasscom participated in the Budget Dialogue 2026 organised by the Times of India in New Delhi. He spoke about the transformative announcements in the Union Budget, including the introduction of a data centre exemption framework, the merger of categories for IT-ITeS, the new safe harbour margins, and the fast-tracking of Advance Pricing Agreements (APAs), which are expected to further propel the growth of the technology sector. It was also highlighted that the opportunity for tech sector lies in shifting from catching up to leapfrogging, which represents the real dividend of technology. India's biggest asset was identified as its talent, which is enabling the country to leapfrog and build further on this strength, thereby emphasising the value of India's technology talent. |
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| MOC | Export Promotion Mission |
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| Ministry of Commerce launched seven additional interventions under the Export Promotion Mission (EPM) on February 20, 2026 to strengthen MSME exports through improved access to finance, compliance support and global logistics infrastructure. The initiatives combine financial enablers under Niryat Protsahan with ecosystem support under Niryat Disha, addressing key constraints such as high cost of capital, market entry barriers and international certification requirements. The Mission also leverages India's expanding FTAs, covering nearly 70% of global GDP, to widen market access. With this launch, 10 of the 11 proposed EPM interventions are now operational, reinforcing India's push for inclusive and globally competitive export growth. |
| India's Startup Framework Takes a Leap | Formal Recognition for DeepTech Startups |
| Nasscom welcomes the DPIIT's recent update to the Startup policy framework vide notification issued on February 04, 2026, recognising Deep Tech startups as a distinct category, marking an important step in aligning policy with the realities of science-led innovation. DeepTech ventures are characterised by high R&D intensity, long development cycles, and significant technical uncertainty, often requiring 10-15 years of sustained investment before commercialisation. The revised framework introduces a clear definition of DeepTech startups, extends the recognition period to 20 years, and increases the turnover threshold to ₹300 crore, reflecting the unique growth trajectory of such ventures. These reforms, long advocated by Nasscom through its budget recommendations and policy dialogues with government stakeholders, are expected to strengthen India's DeepTech ecosystem by enabling patient capital, clearer evaluation frameworks, and targeted policy support for breakthrough technologies. (Read more) |
| AI | Artificial Intelligence | | APA | Advance Pricing Arrangement | | CFO | Chief Finance Officer | | CSP | Cloud Service Providers | | DG | Director General | | DMEO | Development Monitoring Evaluation Office | | DPIIT | Department for Promotion of Industries and Internal Trade | | IT | Information Technology | | ITES | Information Technology Enabled Services | | MeitY | Ministry of Electronics and Information Technology | | MoLE | Ministry of Labour and Employment | | MSME | Micro, Small and Medium Enterprises | | MVAG | Motor Vehicles Aggregator Guidelines | | MWCD | Ministry of Women and Child Development | | NITI | National Institution for Transforming India | | NTLF | Nasscom Technology Leadership Forum | | OSHWC | Occupational Safety, Health, and Working Conditions | | POSH | Prevention of Sexual Harassment | | PWFVS | Payment and Welfare Fee Verification System | | R&D | Research and Development | | SGI | Synthetically Generated Information | | SHe-Box | Sexual Harassment electronic Box | | UP | Uttar Pradesh | | UK | United Kingdom |
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