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With Union Budget 2026 now on the table, the government is prioritizing ease of doing business, strategic self-reliance, and technology-led growth. FM Nirmala Sitharaman’s most impactful move in this budget was the strategic emphasis on building domestic technology supply chains.
The budget leans heavily into reforms aimed at improving business conditions, while doubling down on clean energy, MSME expansion, and inclusive innovation. From technology-enabled support for farmers, women in STEM, youth, and the differently abled, to a sharper focus on scaling manufacturing in strategic sectors, the intent is to move from pilots to platforms. Equally significant is the push to build domestic value chains for critical minerals and rare earths, alongside expanding India’s semiconductor and advanced technology capabilities, signals that India is positioning itself not just as a large market, but as a serious industrial and technological power in a fragmented global economy.
The Tech Panda asked industry players what they thought of the Union Budget 2026.
Dr. Sujata Seshadrinathan, Co-Founder & Director, Digital Transformation, Basiz
“The budget clearly indicated GOI momentum towards optimum adoption and propagation of advanced technology. Digital enablement and its accruing progress has benefited all sectors including PSUs, manufacturing, health care, finance, and defence and is rightly empowering our growing economic status. At this juncture the respected FM taking cognizance of both the pros as well as seeking to address the cons like ecological impact and Labour displacement caused by technology, AI for instance, is very much a push in the right direction. Addressing AI possibilities for a broad spectrum of applications and its impact on youth, farmers, women in STEM, Divyang, with budgetary allocation for skilling as well as reskilling displaced labor has addressed the need of the hour. Policy stability as a requirement for this progress has also been recognised.
“Overall the placement of DeepTech as a catalyst for inclusive growth while addressing the necessary conditions for this has received the necessary focus and boost in the budget through the various schemes announced. The budget also recognised the need for research and development in several sectors like rare earth, semiconductor technology and DeepTech which will propel India towards development of products in these fields, where we are lacking now.”
Saurabh Mukherjea, Co-Founder & CIO, Marcellus Investment Managers
“The Union Budget 2026–27 is directionally positive for India’s long-term economic health, even though markets have reacted nervously in the short term. The increase in Securities Transaction Tax on F&O trading is a necessary corrective. Over the past few years, speculative derivatives trading activity has destroyed large amounts of household capital, and this move should help redirect savings towards consumption and productive investment. Equally important is the government’s decision to set up a high-level committee to review the banking and financial system, which could accelerate PSU bank privatisation and unlock greater participation from global and domestic private capital.
“The key concern, however, is the rise in capital expenditure at a time when tax revenues are undershooting. Funding higher capex through increased borrowing risks tightening financial conditions by pushing up bond yields and the economy’s cost of capital. Overall, the Budget takes important structural steps in the right direction, but its effectiveness will ultimately depend on maintaining fiscal discipline while pursuing growth.”
Baba Kalyani, CMD, Bharat Forge Ltd.
“The Union Budget 2026 reflects the hallmark of Prime Minister Modi’s stable, strong and visionary leadership, anchored in policy continuity, fiscal discipline and a clear focus on building long-term national capabilities.
“I congratulate the Hon’ble Finance Minister on her ninth successive Budget, which strikes a careful balance between macroeconomic stability and sustained investment-led growth. The articulation of a multi-pronged growth framework and the three kartavyas reinforces the commitment to building a competitive, inclusive and future-ready economy.
“At a time of heightened geopolitical and supply-chain uncertainty, these measures are bound to strengthen India’s economic resilience and global positioning, sending a strong signal to both Global and Indian investors.
“Through this budget, the government’s bet on Manufacturing is reinforced; special emphasis on modern infrastructure, high-speed rail corridors, healthcare and cities as engines of growth, is timely and strategic. The progression of the semiconductor programme to ISM 2.0 through ecosystem development, alongside the announcement of rare-earth corridors across eastern and southern India, will significantly strengthen domestic supply chains. Equally important is the focus on green competitiveness, with meaningful allocations for carbon capture and decarbonisation, aligning sustainability with industrial performance.
“Aligned with the geo-strategic realities, the defence sector emerges as a key pillar of this Budget. With defence receiving the second-highest allocation with about 25% increase in the modernisation budget, the emphasis is firmly on upgrading platforms, systems and technologies, while improving procurement efficiency. The message to industry is clear: deepen long-term capability, technology and Aatmanirbharta or self-reliance.
“I laud Madam Minister’s special thrust on Information Technology Services for companies setting-up Data Centers and Cloud Services from India; the 22yr tax holiday for such investments is a well-thought initiative aimed at Global leadership in this segment.
“Finally, the focus on university-industry clusters and AI-led productivity will help India fully leverage its demographic dividend. Overall, the Budget provides industry the confidence to invest, innovate and partner in building a globally competitive Indian economy.”
Ritvik Dashora, CFA, CEO, Tradomate
“The government’s move to trim the fiscal deficit from 4.4% to 4.3% of GDP sends a message of restraint in an uncertain global environment. While the cut is marginal, it signals that fiscal discipline is being prioritised over headline-grabbing populist measures.
“On the borrowing front, FY27 net market borrowing of ?11.27 lakh crore and net tax receipts of ?27.75 lakh crore suggest a fiscal framework that looks achievable rather than aggressive. That’s broadly supportive for bond yields and macro stability, though global rates and oil prices will still matter more for the bond market.
“In capital markets, higher securities transaction tax (STT) on futures and options appears to be a deliberate attempt to curb excessive retail speculation and improve market quality. The trade-off could be lower volumes and near-term pressure on the markets.
“Structural tax changes – including a new Income Tax Act from April 2026, lower minimum alternate tax, and cleaner buyback taxation – are aimed at reducing arbitrage and improving transparency, which long-term investors tend to value.
“Overall, this is a Budget designed to build confidence with long-term capital rather than deliver short-term growth triggers. Markets may see near – term volatility, but the policy signal is one of stability over stimulus.”
Vikram Chhabra, Senior Economist, 360 ONE Asset
“The budget emphasises focused and targeted reforms to build resilience, unlock productivity gains, and accelerate economic growth. It lays out a roadmap to scale up manufacturing across seven strategic sectors, back SMEs with dedicated funds and faster financing, and enhance infrastructure in Tier II and III cities, and expand cargo corridors, waterways, and seaplane connectivity. The budget also aims to deepen corporate bond markets, attract global businesses via targeted tax incentives, and reduce key input customs duties while streamlining procedures. At the same time, it maintains fiscal consolidation and stays committed to the 50% debt-to-GDP target by FY31. Overall, the budget seeks to build a more resilient and dynamic economy for the future.”
Sudarshan Venu, Chairman, TVS Motor Company
“The Union Budget 2026 provides a strong and consistent policy framework for India’s emergence as a global powerhouse under the leadership of Prime Minister Narendra Modi. The sustained push on infrastructure, higher capital expenditure, and reforms aimed at easing business conditions will help in attracting private investment and strengthening supply-chain resilience. We welcome the focus on clean energy solutions, MSME growth, and technology-led inclusion – benefiting farmers, women in STEM, youth, and the differently abled. The focus on scaling manufacturing in strategic sectors, building domestic value chains for critical minerals and rare earths, and expanding semiconductor and advanced technology capabilities will be vital for the future of EVs, electronics, and next-generation mobility.”
Pankit Desai, Co founder CEO, Sequretek
“The Union Budget 2026 made the growth of India’s digital economy as one of the core focus area of growth of the economy. With strong GDP numbers already released, the FM focused on several initiatives that can bring more capital in the country. The announcement on raising the safe harbour limit to Rs 2000 crore for IT and ITES companies will benefit the sector immensely.
“For IT companies with overseas group entities, the higher INR300 crore threshold expands access to safe harbour provisions, reducing transfer pricing litigation and tax disputes. In effect, if transactions with overseas affiliates are priced in line with prescribed arm’s-length norms, tax authorities will not challenge the pricing methodology—bringing greater certainty, lower compliance risk, and fewer legal issues.
“Additionally, the tax holiday for setting up data centres in India by foreign cloud companies gives out a strong signal as the world looks at India as a major GCC centre. This will also strengthen our technological sovereignty.
“The Make in India, Make for the World, has received a further impetus with the INR10,000 crore SME Growth Fund that will empower the growth engine of our economy to adopt emerging tech, meet risk capital requirements to become globally competitive. In a nutshell, the Budget this year attempts to lay a path for India to become a global tech powerhouse across manufacturing, services and much more.”
Abhinav Saxena, Founding Partner, Saxenas And Kumar Law Chambers LLP
“The Union Budget 2026 is a definitive step towards de-clogging India’s legal and regulatory arteries. We specifically welcome the proposal to implement a comprehensive New Income Tax Act to replace the six-decade-old law. For the legal fraternity and our corporate clients, this simplification is a long-awaited reform that will drastically reduce interpretation disputes and compliance friction.
“Furthermore, the focus on digitizing NCLT tribunals and the introduction of a Customs Amnesty Scheme signal a clear shift towards a Trust-Based governance model. By smoothing out the insolvency process and reducing legacy tax litigation, the Government is allowing firms to focus on value creation rather than courtroom battles. For startups and MSMEs, this Ease of Doing Business is the most valuable capital of all.”
Hitesh Jirawla, Founder & CEO, Cubictree
“There has been a huge push from the Govt of India to digitise the courts in India, Now with the legal sector standing at the junction of a quantum leap. The convergence of the India AI Mission with INR 10,000 Cr+ and the government’s aggressive push for R&D allows us to tackle the ‘Iron Triangle of legal tech: Cost, Speed and Accuracy. Having navigated this landscape for a decade and a half, we see the government’s multiple AI Innovation Fund is not just as a fund, but as a validation that Legal AI is the new infrastructure of a developed India”.
Mythri Kumar, Co-Founder, TimBuckDo
“The Union Budget 2026–27 takes a decisive step towards building Viksit Bharat jobs by formally recognising the gig economy as a critical pillar of India’s workforce. Measures such as social security coverage, digital ID cards and access to government services for gig workers bring long-awaited dignity, stability and inclusion to millions of independent professionals. The National Digital Knowledge Grid and education-to-employment focus will unlock new-age opportunities for creators, researchers, local experts, startups and MSMEs, creating a vibrant ecosystem of flexible, skills-driven jobs. Coupled with the INR10,000 crore fund-of-funds for startups, the Budget strengthens the link between education, entrepreneurship and employability, laying the foundation for a future-ready workforce where gig and digital-first careers play a central role in India’s growth story.”
Jaisimha Rao, Founder & CEO, Niqo Robotics
“With the launch of Bharat-VISTAAR, which integrates AgriStack with AI-enabled advisory systems, the Budget takes a clear step towards building a trusted digital data backbone for Indian agriculture. By focusing on productivity, risk reduction and customised, data-driven support for farmers—especially small and marginal farmers—the Budget creates a strong foundation for technology-led services that can improve on-farm decision-making without adding to farmers’ capital burden.”
Rajan Navani, Chairman, JetSynthesys, Chairman, CII India@100 Council
“I am happy to see the government recognise the economic value of youth-led creation capabilities and actively support their growth as India moves towards a Viksit Bharat. This acknowledgement reinforces the critical role that creativity, content, and digital-first industries will play in shaping India’s next phase of economic expansion.
“As a Member of the Board of Directors of IICT, I especially welcome the government’s initiative to establish 15,000 content labs across secondary schools and 500 colleges nationwide. This is a powerful step towards expanding the creative talent pool while simultaneously raising the bar for world-class capabilities and quality—laying a strong foundation for Bharat’s creative industries to compete globally.
“Budgets shape balance sheets for a year, but growth-focused budgets shape the nation’s future for decades. And this is definitely one for Viksit Bharat of 2047, Deepening Bharat’s internal economic strength for inclusivity and at the same time ensuring India’s march on the global stage leveraging the technology and creative power of a young India.”
Rakhi Pal, Co-Founder & COO, EventBeep
“The gap between higher education and the job market has long been a concern, and it is encouraging to see the government taking note. The Union Budget 2026–27 addresses this challenge through the proposal of a high-powered education-to-employment standing committee, aimed at focusing on employment generation, export of services and technologies, and integrating AI-linked skills with evolving job requirements. This demonstrates a clear intent to align higher education with the needs of the modern labour market. Additionally, the allocation of a Rs. 10,000 crore growth fund for MSMEs will help build stronger organizations, which in turn will create more employment opportunities. These measures address both the supply and demand sides of the system, providing a meaningful boost to the career prospects of India’s young workforce and strengthening the broader economic ecosystem.”
Taranbir Singh, Founder & CEO, Bharat Supply
“The Union Budget 2026–27 seeks to strengthen infrastructure critical for rural and beyond-metro logistics through new Dedicated Freight Corridors, expansion of inland waterways and coastal cargo, domestic container manufacturing, and targeted investment in Tier II and Tier III by establishing a new model – City Economic Regions. For platforms like Bharat Supply, serving over 2 lakh villages, CER-led infrastructure can enable modern fulfilment centres, aggregation hubs and multimodal connectivity closer to production clusters, reducing distance, time and cost for rural supply chains, and improving access from hinterlands to national markets.”
Girish Aggarwal, MD, APM Terminals Pipavav
“Budget 2026 reassures the government’s continued focus on infrastructure-led growth and the importance of logistics as a key enabler of India’s trade competitiveness. At a time of global uncertainty, the record public capital expenditure of INR12.2 lakh crore and the emphasis on integrated connectivity through freight corridors, coastal shipping, inland waterways, and port-led development provide a stable and confidence-building signal for the sector.
“Focused initiatives such as the Dankuni–Surat Dedicated Freight Corridor and the operationalisation of new national waterways strengthen multimodal connectivity, while investments in ship-repair ecosystems and high-speed rail corridors reflect a forward-looking approach to long-term infrastructure development.
“The Finance Minister’s emphasis on keeping the ‘Reform Express’ firmly on track is clearly visible in these initiatives, as well as in the INR10,000 crore allocation for container manufacturing and the focus on sustainable cargo movement. From an industry perspective, these measures will significantly improve connectivity, reduce transit times, lower logistics costs, and enable Indian ports to operate with greater efficiency, reliability, and scale. The Budget’s focus on digitised, integrated customs processes and faster cargo clearances is a meaningful step towards improving ease of doing business. The expansion of AI-enabled, non-intrusive scanning across major ports will directly support faster cargo movement and lower transaction friction, translating into improved reliability and efficiency across the logistics chain for ports and trade.”
Bhagirath Goswami, Founder, Being Exporter
“Union Budget 2026 may not announce headline export incentives, yet it reflects a clear understanding of what exporters truly need. From the Being Exporter community’s ground-level experience, sustained investment in ports, logistics, freight corridors, and container capacity directly improves delivery reliability and buyer confidence. Customs duty ecentralizeon on critical inputs eases cost pressure for exporters across textiles, leather, food processing, marine products, and electronics. The Budget’s deeper interpretation is simple: exports grow when manufacturing quality, compliance, and execution improve. This is a prepare-and-perform moment, policy creates momentum, but results will come from disciplined pricing, stronger processes, and long-term buyer relationships globally.”
Amit Sharma, Founder & Whole Time Director, Matrix Geo Solutions
“The Union Budget 2026–27 sends a clear signal that India’s next phase of infrastructure growth will be driven as much by data and precision as by physical assets. With record capital expenditure of INR12.2 lakh crore and a strong focus on transport, urban development, water systems, and digital ecosystems, infrastructure planning and execution are set to become more technology-led and outcome-focused. Large corridor projects, smart cities, flood mitigation, and logistics networks increasingly depend on accurate terrain models, authoritative base maps, and real-time geospatial intelligence to reduce risk and accelerate delivery. Continued policy support for drones, space technologies, and artificial intelligence reinforces the shift from static 2D drawings to integrated 3D and 4D planning environments. For project owners, PSUs, and EPC players, survey-grade, decision-ready geospatial data will now be as critical as construction itself. At Matrix Geo Solutions, we see this Budget as an execution accelerator, where precision, integration of engineering with GIS, and digital continuity from planning to operations will define timely, resilient, and cost-effective infrastructure delivery.”
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