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India's budget includes a five-year exemption on foreign-sourced income for non-resident individuals providing services under government schemes, addressing double taxation concerns. This measure aims to attract and retain foreign specialists in emerging sectors such as electronics and semiconductors.

The exemption applies to individuals who have been non-residents for the previous five tax years and will not tax income from outside India during their initial work period in the country. This shift from a residence-based global taxation model is expected to facilitate the deployment of senior technical talent and enhance India's appeal amid tightening visa regulations in developed countries. Industry leaders anticipate further reforms to attract global talent, particularly in technology and manufacturing sectors.