Indiaโs technology industry is expanding rapidly across global markets, but the growing cross-border nature of digital businesses is also creating new questions around taxation, regulation, data, cybersecurity and accountability. Finance Minister Nirmala Sitharaman has called on technology companies to ensure they contribute fairly to the jurisdictions where they generate profits.
Speaking at the valedictory session of the 7th Global Fintech Fest 2026 in Mumbai, Sitharaman emphasised the need for technology companies to meet their tax obligations in the markets where they operate while contributing to the societies and ecosystems that support their growth.
The comments come as technology companies increasingly operate through complex international models. Products may be developed in one country, run on infrastructure located elsewhere, use AI models developed in another market and serve customers across multiple jurisdictions. This has made taxation and regulatory compliance more complicated for businesses operating at global scale.
According to the broader discussion at the event, differences in national rules around data, licensing, cybersecurity, taxation and consumer protection can create additional hurdles for companies entering international markets. For Indian startups and technology businesses seeking global expansion, navigating these regulatory differences can become a significant operational challenge.
Push for a Federated Industry Platform
To address some of these challenges, Sitharaman proposed the idea of a federated industry platform that could give Indiaโs technology ecosystem a stronger collective voice in international technology discussions.
Such a platform could support Indian companies by helping them understand regulatory requirements across markets, identify areas where standards can be made interoperable and share best practices related to data and cybersecurity.
The proposed industry mechanism could also engage with foreign governments and regulators before emerging technology rules develop into barriers for Indian businesses. It could further help companies commercialise intellectual property and enter overseas markets with greater confidence.
For a technology sector increasingly focused on international growth, greater coordination could help businesses reduce regulatory uncertainty while ensuring that Indian industry has a stronger presence in global technology policy discussions.
Frontier AI Raises Safety Concerns
Sitharaman also highlighted the growing concerns surrounding frontier artificial intelligence and the pace at which AI capabilities are developing.
The rapid adoption of advanced AI and agentic systems has brought new questions around cybersecurity, misuse, accountability and the ability of existing safeguards to keep pace with technological progress.
The discussion comes amid growing global concerns about the use of AI in cyberattacks, influence operations and other high-impact activities. The increasing capabilities of AI systems are also putting greater pressure on governments, technology companies and institutions to establish stronger safety and governance mechanisms.
Greater Responsibility for Businesses
The Finance Minister also stressed the importance of senior management and boards understanding how AI is being deployed within organisations, what data these systems access and what risks could arise from their use.
As AI moves deeper into business decision-making, higher-risk applications are likely to require stronger human oversight, transparency and accountability.
For Indiaโs technology industry, the emerging challenge is therefore not only about maintaining innovation and global competitiveness. It is also about building responsible frameworks for taxation, cross-border operations, cybersecurity and AI governance as technology becomes increasingly central to the global economy.
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