The Union Budget 2026-27, presented today by Finance Minister Nirmala Sitharaman, lays out a roadmap that puts manufacturing revival, technology self-reliance, MSME empowerment, and sustainable growth at the heart of India’s entrepreneurial journey toward Viksit Bharat.
At Startup Success Stories, we focus on the real-world impact behind these announcements. We bring together candid reactions and insights from startup founders, venture capitalists, angel investors, and leaders in the entrepreneurial ecosystem. These voices reflect on how the proposals stack up against on-ground needs, from improving capital access and regulatory support for startups, to investment incentives and risk-sharing for VCs and investors, and policy boosts for competitiveness, skilling, and infrastructure and allied sectors.
Manoj Nair, Head of Applications – Fujitsu: “The Hon’ble Finance Minister has presented a forward-looking Union Budget that strongly reinforces India’s Viksit Bharat ambition, and conducive policies to make India a global technology hub. There is a huge focus on AI by positioning it as a force multiplier, combined with robust policies to support the growth of data centres. The launch of the India Semiconductor Mission 2.0 will accelerate the development of a resilient semiconductor ecosystem, spanning materials, equipment, full-stack IP design, and enhancing supply chains.
The move to approve Safe Harbour for IT services through an automated, rule-based mechanism is a significant reform that enhances ease of doing business and provides certainty in taxation for the industry. Equally encouraging is the focus on positioning data centres as critical infrastructure, along with the proposal to extend tax holidays till 2047 for global cloud service providers operating from India.
Together, these measures will help in boosting investor confidence, enhance innovation, create long-term growth opportunities for semiconductor and IT services companies, including data centre players, while further strengthening India’s role in the global technology value chain.”
Satya Yeruva, Co-Founder & CEO of FinStackk: “It is a positive step that the Union Budget has enhanced the safe harbour threshold for IT services to Rs 2,000 crore from Rs 300 crore. Bringing all IT companies under a single, uniform safe harbour category will simplify compliance, reduce uncertainty, and make tax obligations far more predictable. This change benefits not just small and mid-sized companies, but larger firms as well, lowering the risk of litigation and enabling them to expand globally with confidence. The allocation of Rs 10,000 crore as a growth fund for startups and MSMEs is equally encouraging, as it provides the capital and support needed to scale their operations, innovate, and contribute to India’s growing digital economy. Measures like these reinforce India as a stable and attractive base for technology-driven businesses while fostering entrepreneurship and long-term growth.“
Rajeev Singh, Managing Director, BenQ India and South Asia: “The Union Budget 2026 makes a clear statement on reimagining education as a direct driver of employability and economic growth. The proposed Education-to-Employment Standing Committee acknowledges the urgent need to align learning with industry demand and the accelerating impact of technologies such as artificial intelligence.
Initiatives such as Content Creator Labs in 15,000 schools and the development of university townships near industry corridors mark an important shift towards hands-on, technology-enabled, and industry-connected learning environments. These measures will encourage creativity, collaboration, and real-world skill development across K-12 and higher education.
Together with continued support for domestic manufacturing and the semiconductor ecosystem, the Budget creates a strong foundation for modern digital classrooms and future-ready campuses. It enables education and enterprise technology providers to play a meaningful role in building skills, improving learning outcomes, and preparing India’s talent base for global competitiveness. It will be good to see how these initiatives take shape in the coming days, and we will support them to the best of our ability.”
Ravi Agarwal, Co-Founder and Managing Director, Cellecor: “The Union Budget 2026 reflects a steady and constructive approach toward strengthening India’s consumer electronics and technology manufacturing ecosystem. The near doubling of the Electronics Components Manufacturing Scheme outlay from ₹22,919 crore to ₹40,000 crore is a meaningful step toward building a stronger domestic component supply chain. Alongside the expansion of the India Semiconductor Mission (ISM) 2.0 into a broader, full-stack programme covering materials, equipment, design, and R&D, this signals strong momentum toward positioning India higher on the global electronics value chain.
The parallel focus on employment generation and large-scale skilling in electronics manufacturing and emerging technologies will help create a future-ready workforce across factories, assembly lines, and service ecosystems.
Overall, the Budget creates a supportive environment for consumer electronics brands to invest with confidence. We look forward to contributing to this growth journey through innovation, localisation, and product development.”
Pankaj Rana, CEO, Hisense India: “The Union Budget 2026 outlines a forward-looking technology roadmap that strengthens India’s position as a global electronics and innovation hub. The sustained focus on semiconductor manufacturing, electronics components, and AI-led innovation reflects a strong policy commitment to building a resilient domestic ecosystem. Initiatives like India Semiconductor Mission 2.0 and the enhanced outlay for electronics manufacturing are expected to deepen local value creation and strengthen supply chains. For the consumer electronics industry, this creates a stable, growth-oriented environment that encourages long-term investments, innovation, and localisation.”
Aditya Khemka, Founder & Managing Director, CP PLUS: “The Union Budget 2026 signals a decisive shift in India’s technology and security journey, with a clear focus on building capability at home. The strengthened push under the India Semiconductor Mission 2.0 is not only about self-reliance, but about ensuring that the intelligence, computing power, and hardware powering next-generation AI systems are designed and manufactured in India.
The government’s emphasis on artificial intelligence reflects a move from experimentation to real-world, mission-critical deployment. As AI becomes central to public safety, surveillance, and smart infrastructure, this Budget lays the foundation for scalable, secure, and responsible adoption across the country.
For homegrown technology companies, this policy clarity creates long-term confidence to invest locally, innovate for Indian needs, and build globally competitive solutions. It positions India not just as a consumer of advanced technologies, but as a trusted creator of AI-led security and infrastructure solutions aligned with the vision of Make in India.”
Rahul Garg, Founder-CEO, Moglix: “The Budget’s emphasis on artificial intelligence, quantum research and innovation-led missions strengthens India’s technology backbone. These investments enable enterprises to deploy AI across manufacturing optimisation, procurement automation and supply chain forecasting. When combined with sectoral programmes such as textile modernisation and industrial cluster rejuvenation, emerging technologies will play a critical role in improving productivity, quality control and operational efficiency across traditional and advanced industries.“
Murali Mantravadi, Joint Managing Director, Energy Bots – Flosenso: “Reading the Union Budget 2026, what becomes clear is a steady shift in how technology is being viewed. The push through India Semiconductor Mission 2.0 and higher investment in electronic components suggests the government wants India to build deeper capability, not just scale services. That is an important signal. Sustainable advantage comes from owning design, supply chains and execution, not only distribution. The continued emphasis on AI, industry-linked research and creative skills points to an understanding that technology outcomes depend as much on people and process as on policy. The real test now is execution, but the intent feels more structural than symbolic.“
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 ₹10,000 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.“
Subhakar Pappula, Founder & CEO, Flamingo Aerospace: “The Union Budget 2026–27 is a timely and decisive intervention for India’s civil aviation ecosystem. The exemption of basic customs duty on aviation components, parts, and raw materials directly addresses long-standing cost and supply-chain constraints that have limited scale, localisation, and global competitiveness.
As highlighted by Hon’ble Union Finance Minister Nirmala Sitharaman, the proposed duty exemptions for components used in civilian training and other aircraft, as well as for raw materials supporting MRO requirements in the defence sector, will significantly strengthen domestic manufacturing and maintenance capabilities.
These measures will accelerate aircraft manufacturing, expand MRO infrastructure, create skilled employment, and reinforce India’s emergence as a dependable regional aviation and aerospace hub. The Budget’s broader emphasis on capital investment, including customs duty exemptions on capital goods across key sectors, along with the proposal to institutionalise services-sector policy through a high-powered committee assessing the impact of AI on jobs, reflects a forward-looking approach to competitiveness and workforce readiness.
Together, these steps strongly advance the objectives of Make in India and Atmanirbhar Bharat by enabling the aviation sector to build resilience, deepen value addition, and move up the global value chain.”
Rajashri Sai, Founder & CEO, Impactree.ai: “The Union Budget 2026 sends a clear signal that India is ready to place technology, and particularly AI, at the heart of its next growth cycle. The emphasis on national AI missions and a structured push to make the services sector a core driver of Viksit Bharat reflects a long-term view rather than a short-term stimulus.
Over the next decade, we expect India’s IT and services sector to evolve from being largely execution-led to becoming insight- and outcome-driven, with AI, data platforms, and digital infrastructure shaping how value is created. This transition will not only redefine productivity but also open new categories of jobs and specialised skills across the ecosystem.
What will be critical is ensuring that emerging technologies are accessible beyond large enterprises. If implemented well, these missions have the potential to help MSMEs and mid-sized IT players participate meaningfully in global value chains, while positioning India as a trusted hub for next-generation digital services by 2047.”
Vivek Shankaranarayanan, Co-founder and CTO, Impactree.ai: “The Union Budget 2026 rightly positions artificial intelligence and emerging technologies as the backbone of India’s next phase of inclusive growth. The ₹25-crore allocation for AI capacity-building missions and the proposal for a high-powered committee on the service sector signal a forward-looking approach to making India a global knowledge and innovation hub by 2047.
For MSMEs, this focus on digital and AI ecosystems is particularly transformative. Technology can become the bridge that helps small enterprises convert sustainability and governance performance into financial credibility. AI-driven platforms can simplify ESG reporting, strengthen supply-chain intelligence, and enable access to green and transition finance that has so far remained concentrated among large corporations.
The government’s commitment to measuring the impact of AI on jobs is welcome and timely. What is now needed is a clear integration of these missions with climate-finance frameworks so that MSMEs can use data, automation, and Green Credit mechanisms to unlock affordable capital and new market opportunities.
If executed with strong public-private collaboration, this Budget can accelerate India’s journey toward a resilient, service-led and sustainable economy, where technology empowers even the smallest enterprise to participate in the nation’s industrial revolution.”
Alok Anibha, Founder – Girikon.AI: “In the Union Budget 2026–27, the Government of India has highlighted AI and emerging technologies as key enablers of governance, productivity, and economic growth. This signals a clear shift toward scalable, enterprise-grade AI adoption, where real value will be driven by solutions that are production-ready, responsible, and aligned with business outcomes.“
Ankush Jain, CFO at Proventus Agrocom Limited (ProV): “The Union Budget 2026-27 seeks to push high-value agriculture as a forward-looking move that could meaningfully redefine farm incomes. Promoting high-density cultivation of almonds, cashews, walnuts, and pine nuts while linking production to processing, branding, and exports shows a clear shift from volume to value. Creating sustainable crop clusters can help farmers in hilly and coastal regions diversify beyond climate-vulnerable staples. If backed by strong infrastructure, extension support, and market access, this strategy can reduce import dependence and position Indian growers more competitively in the global premium agri-produce market.“
Pritesh Tiwari, Founder Chief Data Scientist – Data Science Wizards: “The Union Budget 2026–27’s focus on AI and emerging technologies reflects a growing recognition that data and intelligence are becoming core economic infrastructure. The real opportunity now lies in building strong data foundations and AI operating systems that can turn insights into consistent, real-world decisions at scale.“
Sheetal Arora, Promoter & CEO, Mankind Pharma: “The Union Budget makes a clear and timely choice by placing biopharma at the centre of India’s next manufacturing wave, alongside other frontier sectors. As India’s disease burden shifts towards diabetes, cancer, and autoimmune disorders, and advanced NCD therapies gain wider adoption globally, the focus on biologics and biosimilars is both relevant and necessary. The Bio Pharma Shakti initiative recognises that longevity, quality of life, and affordability will define healthcare outcomes going forward.
The Finance Minister, Nirmala Sitharaman, has reinforced the Viksit Bharat vision through a ₹10,000 crore commitment to build a strong domestic biopharma ecosystem, strengthen institutions, upgrade the Central Drugs Standard Control Organization to global standards, and enable faster, predictable approvals. The full BCD exemption on 17 cancer drugs and targeted relief for rare diseases will further improve patient access while supporting innovation in high-need areas.
Over the coming years, the alignment of these reforms with the evolving **European Union–India trade framework will help Indian pharma move from scale to leadership, attract global investment, and strengthen India’s position as a trusted manufacturing and innovation partner in advanced therapies.”
Mohan Ramaswamy, Founder and CEO, Rubix Data Sciences: “As MSMEs cross employment or turnover thresholds, reporting and regulatory requirements multiply across labour, tax, safety, and environmental regimes, raising fixed costs and management complexity. The Economic Survey links this directly to scale avoidance, with 77% of factories remaining small and accounting for only 21% of manufacturing employment. Many MSMEs respond by fragmenting operations, delaying formal hiring, or limiting investment, which weakens productivity and job creation. The Budget’s proposal to create accredited ‘corporate mitras’ in tier-2 and tier-3 towns addresses this gap by providing affordable, localised compliance support at the point where firms attempt to grow. By lowering compliance-related transaction costs and uncertainty, without diluting standards, this measure can help convert formalisation into sustained firm expansion and more stable employment. However, outcomes will depend on how clearly roles are defined, how practical the tools are, and how well these para-professionals are integrated with digital compliance systems. If implemented effectively, this initiative can reduce compliance uncertainty, support firm expansion, and improve the employment impact of MSME growth.
The Budget’s manufacturing thrust aligns closely with what the Economic Survey flags as India’s core opportunity and constraint. Despite accounting for just 2.9% of global manufacturing value added and under 2% of merchandise exports, India is now actively reshaping the conditions needed to scale. Recent trade agreements signal a clear intent to plug Indian manufacturers more deeply into global value chains, particularly in assembly- and export-oriented segments. Budget measures spanning tariff rationalisation on inputs, logistics and freight corridors, sector-specific manufacturing clusters, and capital support for MSMEs together reduce the frictions that have historically limited India’s backward integration into global production networks. For a labour-abundant economy, this combination of market access through trade agreements and domestic competitiveness through policy reform creates a credible pathway to higher exports, better-quality manufacturing jobs, and a stronger domestic value-added base over time.
The Economic Survey makes it clear that MSME credit expansion is happening alongside growing stress on cash flows. Average borrowing per unincorporated enterprise has increased, and more firms are entering the formal credit system, yet nearly ₹8.1 lakh crore remains stuck in delayed payments. The Budget’s decision to deepen the role of TReDS, by making it a settlement backbone, extending guarantee support, and integrating it with GeM, addresses this imbalance by shifting the focus from loan disbursal to payment certainty. The INR 10,000 crore SME Growth Fund adds a much-needed equity layer to support firms ready to scale, while data-led credit assessment models adopted by public sector banks reinforce more objective and efficient lending. Taken together, these measures move MSME policy beyond incremental fixes toward building financial resilience, transparency, and scalability.”
Akash Agrawalla, Co-founder, ZOFF Foods: “The Union Budget 2026–27 is a forward-looking blueprint that democratises growth across India. As a brand rooted in Raipur, we welcome the focus on Tier-2 and Tier-3 cities as the Bharat’s new growth engines._
The revival of 2,000 industry clusters and the ₹10,000-crore MSME Growth Fund are masterstrokes for the manufacturing ecosystem. By integrating platforms like GeM and TReDS, the government is effectively solving the liquidity bottlenecks that often hinder small enterprises. Furthermore, the expansion of dedicated freight corridors and national waterways will drastically reduce logistics overheads, which is critical for the food processing industry to remain competitive globally._
The emphasis on SHE Mart and high-value agriculture – particularly the support for coastal crops and rural value chains – demonstrates a deep commitment to empowering women-led enterprises and farmers alike. Coupled with the reduction in the MAT rate to 14%, this budget doesn’t just sustain economic momentum; it empowers the next generation of home-grown entrepreneurs to scale sustainably from the heart of India.”
Mr. Sanjiv Navangul, CEO, BSV (A Mankind Group Company): “The Union Budget 2026 provides much-deserved momentum for India’s biopharma journey. We welcome the government’s intent to strengthen the biopharma ecosystem, and the Biopharma Shakti initiative is an encouraging step in this direction. The focus on building scale across strategic and frontier sectors creates the right environment for long-term improvements in health outcomes. The initiative recognises the need for innovation and research while creating a conducive ecosystem for good health through knowledge sharing and technology.
Alongside this, the emphasis on driving research by setting up new National Institutes of Pharmaceutical Education and Research will not only build talent but also augment the research capabilities of the country.
Strengthening the regulatory landscape through a robust biopharma-focused network, including enhanced capacity and faster approval timelines, will further support innovation and improve patient access.
Further, the proposed investment of Rs 10,000 crore over five years, along with the emphasis on domestic production, will go a long way in strengthening supply security and reducing dependence on imports. This aligns with the vision of BSV, as we remain committed to making in India for India and the world.
Additionally, the Budget’s proposal to promote India as a global hub for sports goods is also encouraging. Improved access to quality sports equipment can help drive wider participation of women in sports while supporting healthier lifestyles.”
Dr. Ankit Gupta, Managing Director, Park Medi World Limited: “The Union Budget 2026 presents a comprehensive roadmap for strengthening India’s healthcare ecosystem at a time when the country’s disease burden is shifting towards non-communicable diseases such as diabetes, cancer, and autoimmune disorders, alongside a rapidly ageing population. The proposed addition of one lakh allied health professionals will help bridge workforce gaps across hospitals, rehabilitation centres, and community-based care settings. This is complemented by plans to train 1.5 lakh caregivers through NSQF-aligned, multi-skilled programmes, strengthening long-term, elderly, and post-acute care services.
The establishment of five regional medical tourism hubs in partnership with the private sector reinforces India’s ambition to emerge as a preferred global healthcare destination. For hospital networks such as Park Hospitals, these initiatives create meaningful opportunities to scale specialised allied services, strengthen geriatric and rehabilitation care, and contribute to medical value tourism aligned with national healthcare priorities.”
Sandeep Khuperkar, Founder and CEO – Data Science Wizards: “In the Union Budget 2026–27, the Government of India has emphasised AI and emerging technologies as foundational to governance, productivity, and economic growth. This signals a deeper shift from simply building AI to effectively running it at scale with proper oversight. As AI becomes embedded across public and enterprise systems, organisations will increasingly need AI operating systems that build governance into everyday operations, helping manage data, models, and decisions in real time and enabling a move from isolated AI use cases to scalable, transparent, system-level intelligence.“
Abhineet Kumar, CEO & Founder, Rocket Health: “Delighted to see the budget acknowledging the mental healthcare ecosystem in India and announcing new national-level mental healthcare institutions aimed at improving care delivery, training and research. It’s a strong start and will go a long way in developing the mental healthcare infrastructure in our country. I’m glad we are also doubling down in pharma manufacturing and expanding medical seats to address doctor shortages – both much needed steps to improve access for our billion strong population and strengthen India’s position as a global healthcare leader.“
Vedant Goel, CEO of Enlight Metals: “Union Budget 2026 charts a bold path for India’s metals and energy future. With Rs 20,000 crore fueling carbon capture tech in steel and key sectors, we’re tackling ESG challenges head-on. Rare-earth magnet corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu secure critical minerals supply chains. Green hydrogen gets a vital boost, complemented by Rs 10,000 crore MSME Growth Fund and seven high-speed rail corridors. Amid 7% growth, fiscal discipline, and global integration, these steps propel Viksit Bharat balancing ambition, inclusion, and energy-water resilience.“
Manas Pal, Co-Founder, PedalStart: “The 2026 Budget marks a pivotal moment for India’s startup ecosystem, it’s not just about yearly relief, it’s about building lasting infrastructure, policy stability, and capital availability that founders need to transition from building incremental apps to creating foundational, globally competitive technology companies. This Budget’s focus on expanding digital and data infrastructure, strengthening funding channels, and enabling AI and deep-tech innovation lays a more predictable and strategic foundation for startups to scale, attract investment, and drive global impact.”
Inderjit Makkar, Founder & CEO, Factacy AI: “Budget 2026 has officially turned AI into a national utility for Viksit Bharat. The ₹1 lakh crore DeepTech fund and National Compute Credits solve the infrastructure hurdle, while the ‘Education to Employment and Enterprise’ (EEE) committee ensures AI drives massive job generation. For Factacy, this validates our AIaaS mission: leveraging sovereign intelligence to help India capture its goal of a 10% global share in services exports by 2047.“
Vikram Labhe, Founder & CEO, Melooha: “When we look at where innovation is headed today, it is clear that most breakthroughs are being built on an AI backbone. There is a sharp and growing demand not just for skilled professionals, but for original ideas that can be translated into real economic value. It is encouraging to see the government recognise this shift and respond with a meaningful increase in funding for AI-powered, industry-linked labs, especially across Tier 2 and Tier 3 institutions. This focus helps decentralise innovation and brings high-quality research closer to where talent is emerging. For companies like Melooha, this creates a stronger pipeline of ideas, skills, and applied intelligence. With sustained support for AI and targeted backing for MSMEs, we can expect a new wave of solutions across sectors that are locally rooted, globally relevant, and capable of shaping the next phase of India’s digital economy.“
Madhumita Agrawal, Founder & CEO, Oben Electric: “The Union Budget’s focus on expanding the Rare Earth Permanent Magnet Scheme and building dedicated rare earth corridors is a positive step towards reducing import dependence for critical materials used in EV manufacturing. Rare earth magnets, which are key components in electric motors, benefit directly from this initiative, and strengthening capabilities across mining, processing and advanced manufacturing will create a more reliable domestic supply base.
The India Semiconductor Mission 2.0 and the Electronics Components Manufacturing Scheme will help build domestic capabilities in semiconductors and other electronic components, strengthening the supply chain for critical EV systems and reducing dependence on imports. As electric motorcycle manufacturing scales in India, such measures are particularly relevant for manufacturers with end-to-end, in-house development and manufacturing capabilities, supporting localisation and long-term supply stability.”
Kunal Arya, Co-founder & MD at Zelio E Mobility: “India’s electric two-wheeler segment has gained strong momentum, and the Union Budget 2026–27 takes a step toward scaling it into a full industrial ecosystem. Focusing on rare earth magnets and dedicated corridors in mineral-rich states is crucial to secure the materials that power electric drivetrains. Reducing customs duty on capital goods for lithium-ion batteries will help lower costs and support local manufacturing. India Semiconductor Mission 2.0 and the enhanced Electronics Component Manufacturing Scheme will strengthen supply chains, promote full-stack Indian IP, and accelerate battery and component localisation. This is pleasing to see how the government focuses on MSMEs – through credit guarantee support of ₹10,000-crore SME Growth Fund, it will further empower companies like ours to expand capacity, innovate faster, and compete globally. For Zelio, these measures provide a clear and stable pathway to scale Make in India electric two-wheelers that are affordable, reliable, and designed for mass adoption across Tier II, Tier III, and emerging markets. As the ecosystem matures, further momentum can be unlocked through targeted PLI support for battery cells and motor controllers, along with rationalisation of GST on electric two-wheelers to enhance affordability and widen consumer access.”
Sameer Moidin, Founder & CEO of EVeium Smart Mobility: “Electric two-wheelers today need far more semiconductor and electronic content than ICE vehicles, but the sector is still largely dependent on imports for chips and key components. Steps like the India Semiconductor Mission 2.0 and the enhanced ₹40,000 crore outlay for electronics component manufacturing are encouraging and move us in the right direction. The government’s focus on rare earth permanent magnets and dedicated corridors in mineral-rich states, alongside the creation of high-tech tool rooms and chemical parks, will strengthen domestic mining, processing, and component manufacturing while reducing import dependence. The reduction of basic customs duty on capital goods for lithium-ion batteries is another significant measure that can lower production costs and support local manufacturing at scale. That said, the inverted GST structure remains a real challenge, with inputs taxed higher than finished EVs. Fixing this imbalance will be critical to truly strengthen India’s EV manufacturing ecosystem and make electric two-wheelers more affordable and scalable for mass adoption.”
Bruce Keith, CEO & Co-Founder, InvestorAi: “The ongoing fiscal discipline and general move towards tax harmonisation is welcome. Adding more heft and focus on education in a world where AI is changing the rules also makes sense. Perhaps the biggest surprise to me was the increases in Securities Transaction Tax (STT) on futures and options premium by 150% and 50% respectively.
The Government doesn’t like that 90%+ people lose money in F&O so have chosen to make it more expensive. In my view this is the wrong lever to this problem. Better to look at education and AI rather than risk collateral damage from a reduction in big volume players causing liquidity to shrink. The overall market needs this to function.”
Ankur Mittal, Co-Founder, Inflection Point Ventures: “India’s service led economy can get disrupted with strong gains in AI and hence govt focus on building India as a powerhouse of strong AI talent is a great step to retain our continued growth in the world economy. This will also increase great flow of capital to India from global tech giants to take advantage of the talent pool while also supporting the indian startup ecosystem. IPV startups like CTPL can really support the government in this initiative.“
Anil Joshi, Managing Partner, Unicorn India Ventures: “Indian Semicon is at a very nascent stage and needs a lot of hand holding and policy support, ISM 2.0 will certainly help in mushrooming genuine Semicon use cases and will make India self reliant. Additionally ₹ 40000 CR deployment for electronic components will help resolving supply issues for development. Both the initiatives will help the industry a lot, great policy decision by FM.
The launch of Bharat Vistaar will go a long way in helping the farming sector, the combination of real time data from satellite and AI application can help farmers take informed decisions in improvings farm productivity and also different mix of produce. The announcement of 4 telescope centres will be a big help to astro physics and study the celestial objects and built India’s own self reliant mechanism to study the space and development of respective projects”
Manu Iyer, General Partner and Co-founder, Bluehill.VC: “The launch of India Semiconductor Mission 2.0 in the Union Budget 2026-27 is a watershed moment for India’s technology and manufacturing landscape. By significantly expanding support for domestic semiconductor equipment, materials, design, and supply-chain capabilities, ISM 2.0 will accelerate India’s journey towards self-reliance in advanced chips and position the country as a globally competitive semiconductor hub. Coupled with the strategic decision to establish dedicated rare earth corridors across mineral-rich states – strengthening mining, processing, research and manufacturing of critical minerals – this Budget not only deepens the foundation for high-tech growth but also enhances supply-chain resilience in sectors from electronics to defense and clean energy. Together, these initiatives will drive innovation, high-skilled employment, and India’s role in resilient global value chains.“
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 ₹ 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.”
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 ₹300 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 ₹10,000 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.“
Madhu Rajputra Peravalli, Co-founder, Troogue: “Budget 2026 introduces a few important clarifications that are relevant for companies operating at the intersection of AI, digital services, and workforce platforms. The explicit treatment of manpower services under contractor TDS removes an area of ambiguity that enterprises and talent platforms have navigated for years.
The continued emphasis on AI as core digital infrastructure, along with references to ethical AI, skills mapping, and responsible technology adoption, reflects the direction in which the ecosystem is moving.
At Troogue.ai, we have been building with this exact reality in mind, enabling enterprises to access domain expertise on demand through a compliant, structured, and evaluation-driven platform. These developments create a more enabling environment for models like ours to operate with greater clarity and confidence.”
Dinakar Menon, Managing Partner and Business Head of BigTrunk Communications: “When we look at this Budget through the lens of the marketing industry, the message is clear that artificial intelligence is no longer a future tool but a present-day growth engine. The decision to increase funding for AI-powered, industry-linked labs in Tier 2 and Tier 3 institutions is especially important because it expands the talent and innovation base beyond metros and brings applied intelligence closer to real business problems. For marketing, where content, consumer insight, and automation now depend heavily on data and machine learning, this creates a stronger pipeline of skills and solutions. The formation of a standing committee to study the impact of emerging technologies on jobs also reflects a balanced approach that recognises both opportunity and responsibility. With sustained support through national AI and research missions, India has a chance to build a marketing ecosystem that is smarter, more export-ready, and globally competitive while remaining inclusive and future-facing.“
Pradeip Agarwal, Co- Founder & CRO, Stratbeans: “Budget 2026–27 signals that AI adoption in India is moving into the scale phase. With a ₹1 lakh crore commitment towards research, innovation, and emerging technologies, the focus is clearly shifting from pilots to enterprise-wide execution. The winners will be organisations that go beyond isolated use-cases and build AI capability across people, process, and performance. This isn’t just about skilling; it’s about redesigning workflows, strengthening governance, and embedding AI into day-to-day operations to unlock measurable productivity and quality gains. The next advantage will come from execution how quickly businesses can turn AI intent into repeatable outcomes across functions.“
Shishir Gupta, Co-founder & CEO of Oakter: “The launch of India Semiconductor Mission 2.0 marks a decisive shift from assembly scale to technology depth and IP ownership, which is exactly what the electronics sector has been waiting for. Moving into equipment, materials, and full stack Indian IP creation strengthens the backbone needed for original design manufacturing to thrive at global standards. The increased outlay of ₹40,000 crore for electronics component manufacturing is a strong signal that localisation will now be measured not just in volumes but in capability and value addition. For ODM-led companies, this creates room to design, build, and scale complex products entirely from India while integrating more resilient supply chains. The proposed ₹10,000 crore SME growth fund is equally important as it addresses a chronic gap in growth capital that limits innovation led manufacturing. If implemented with speed and clarity, these measures can unlock automation, deepen component ecosystems, and help Indian electronics brands compete confidently in global markets as creators rather than contract manufacturers.“
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.“
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 ₹12.2 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.“
Ekansh Garg, Co-founder & CEO – Cravicious Foods: “It’s encouraging to see the Union Budget 2026–27 put the spotlight firmly on India’s food processing sector. Support for the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme, along with the proposed ₹28,000 crore allocation over five years for flagship food processing initiatives, signals a serious push to modernize infrastructure, expand cold storage, and strengthen production and testing facilities. For companies like ours, this creates the foundation to grow responsibly, maintain high quality, and ensure compliance. Strong infrastructure not only helps reduce wastage but also enables brands to scale efficiently and deliver products that meet both domestic and global standards. This approach makes it clear that India is committed to becoming a global hub for clean, ready-to-cook, and frozen foods, giving businesses the confidence to innovate and bring better solutions to consumers everywhere.“
Dr. Ashvini Jakhar, Founder and CEO of Prozo: “The Budget 2026–27 sends a strong signal that resilient, technology-led supply chains are central to India’s growth strategy. The Government’s continued emphasis on public capital expenditure, scaled up to ₹12.2 lakh crore, along with new Dedicated Freight Corridors, the operationalisation of 20 National Waterways, and a clear push for modal shift to greener logistics, will materially reduce friction and improve the speed and reliability of goods movement across the country.
By prioritising infrastructure development, domestic manufacturing, and MSME enablement, the Budget reinforces the link between efficient logistics networks and economic competitiveness. Measures such as the ₹10,000 crore SME Growth Fund, enhanced TReDS-based liquidity, and logistics-linked industrial corridors will help smaller enterprises integrate more effectively into domestic and global value chains.
For integrated supply chain platforms like Prozo, this Budget is an enabler for scalable, end-to-end logistics models combining warehousing, fulfilment, and data-driven visibility. As India accelerates its manufacturing and export ambitions, technology-enabled and transparent logistics infrastructure will be critical to ensure businesses of all sizes can compete efficiently in both domestic and global markets.”
Parth Amin, CEO & Co-Founder, Decode Age: “The Union Budget 2026-27 is a definitive signal that India is ready to lead the longevity revolution. For years, we have argued that the future of healthcare lies in targeting the biological roots of aging rather than just managing end-stage disease. With the launch of the Biopharma SHAKTI scheme, the government has provided the missing piece of the puzzle: a massive ₹10,000 crore commitment to the science of biologics and precision medicine.
This budget effectively ends the era of ‘sick-care’ and marks the beginning of a data-led, preventive era. By prioritizing advanced research infrastructure and clinical networks, the government is creating the exact ecosystem needed for companies like Decode Age to scale life-extending innovations. We are no longer just talking about longevity. We are building a future where every Indian can expect more years of peak health and productivity. The mandate is clear: it is time to shift the focus from merely surviving to truly thriving.”
Sammeer Pakvasa, MD & CEO of Eleganz Interiors Limited: “The Budget’s emphasis on affordable housing reforms and incentives for rental homes is a positive step for India’s real estate ecosystem and the commercial interiors sector. These measures are likely to accelerate construction activity while driving demand for well-planned, efficient, and human-centric spaces. For interior design and fit-out companies like Eleganz Interiors, this presents an opportunity to deliver scalable, high-quality solutions that support sustainable urban growth and meaningfully enhance the live-work experience across both residential and commercial developments.”
Dr. Aisshwarya Panddit, Founder and Celebrity Cosmetologist, Aura Edge Aesthetic: “Budget 2026-27 marks a watershed moment for India’s health, wellness, and beauty industries. The Finance Minister’s emphasis on building a robust care ecosystem, coupled with significant investments in health infrastructure and services, creates unprecedented opportunities for our sector.
The announcement of five Medical Value Tourism Hubs in partnership with the private sector directly positions India as a global destination for wellness and aesthetic services. This initiative, combined with upgraded AYUSH facilities including three new All India Institutes of Ayurveda and enhanced certification ecosystems, validates the growing convergence of traditional wellness and modern beauty solutions.
The training of 1.5 lakh multiskilled caregivers through NSQF-aligned programs addresses our industry’s critical talent gap, while the establishment of Allied Health Professional institutions in ten disciplines will create a skilled workforce essential for premium wellness and beauty services.
The focus on the ‘Orange Economy’ with AVGC Content Creator Labs demonstrates government recognition of digital innovation in beauty and wellness marketing. Additionally, improved ease of doing business measures – including reduced TCS rates and streamlined compliance – will significantly benefit wellness tourism and beauty product imports. The ₹10,000 crore SME Growth Fund and enhanced MSME support through TReDS particularly empowers our sector’s numerous small enterprises, from boutique wellness centers to artisanal beauty brands.
This budget’s people-centric approach, combining infrastructure development with skill enhancement and entrepreneurial support, creates a fertile ecosystem for the health, wellness, and beauty sector to flourish as we march toward Viksit Bharat 2047.”
Kumarraju, Managing Director, Titan Intech Limited: “Localising semiconductor manufacturing has been a persistent challenge for India. From LED chips to controllers, critical components remain heavily reliant on imports, creating both cost pressures and supply risks. Strengthening domestic production is essential to build a resilient manufacturing ecosystem and make advanced electronics more accessible to consumers. Achieving cost advantage requires scale, and the Union Budget’s India Semiconductor Mission 2.0 offers a clear pathway for the sector. The increased outlay for the Electronics Component Manufacturing Scheme to ₹40,000 crore can support the development of a robust local supply chain and enable innovation across the value chain. At Titan Intech Ltd our vision is aligned with ISM 2.0 and we believe while the full impact will take time to unfold, these measures represent a significant milestone, bringing real hope for India to emerge as a self-reliant and globally competitive hub for electronics manufacturing.”
S Anand, Founder & CEO, PaySprint: “The latest policy signals reflect a clear intent to strengthen India’s banking and financial services ecosystem through better governance, liquidity support and long-term structural clarity. The focus on reforming banking oversight, enabling NBFC growth, and improving credit flow creates a more stable foundation for digital financial infrastructure players. For fintechs like PaySprint, this environment encourages deeper collaboration with regulated institutions and accelerates the building of compliant, scalable platforms that can power inclusive financial access across Bharat.“
Gagan Sethi, CEO – Ebix Technologies: “With the Union Budget 2026, technology and artificial intelligence move from being enablers to becoming core pillars of India’s economic and governance strategy. The Budget’s continued emphasis on digital public infrastructure, data-led governance, and technology-enabled service delivery reflects a strong focus on scale, efficiency, and transparency across sectors. The reinforcement of national initiatives such as the AI Mission, the National Quantum Mission, and the Anusandhan National Research Fund, along with sustained investments in research, innovation, and skilling, underscores a structured approach to embedding advanced technologies across education, healthcare, financial services, and public administration. The focus on integrating AI into education-to-employment pathways and public systems further aligns technology adoption with workforce readiness and governance outcomes. For the technology and IT services sector, measures including a unified safe harbour margin of 15.5 percent, an expanded eligibility threshold of ₹2,000 crore, and automated approvals provide greater certainty and ease of compliance. In addition, the tax holiday till 2047 for foreign cloud service providers delivering global services using Indian data centre infrastructure strengthens India’s position in the global digital and data economy. Overall, the Budget outlines an execution-oriented approach to leveraging technology and artificial intelligence to support productivity, services-led growth, and long-term competitiveness.”
Ravi Kunwar (VP and CEO, HMD India and APAC): “The Hon’ble Finance Minister must be lauded for her broad vision in covering several key sectors in the Budget. The hiked allocation of ₹40,000 crore for the Electronic Components Manufacturing Scheme will give a fillip to varied verticals, including the telecom industry. Similarly, the proposed launch of the India Semiconductor Mission 2.0, focused on industry-led R&D and training centres for chips, is another welcome announcement.
The move to transform the Customs warehousing framework into a warehouse operator-centric system via self-declarations, risk-based audit and electronic tracking will eliminate the problems of officer-linked approvals. This will reduce transaction delays and lower compliance costs.
The decision to create a High-Powered ‘Education to Employment and Enterprise’ Standing Committee to help in assessing the impact of emerging technologies, such as AI, on jobs and skill requirements, will be useful in introducing suitable measures to mitigate the downside. The promotion of environmentally sustainable cargo movement through the proposed East to West corridor is also good news. Likewise, the decision to build seven high-speed rail corridors between cities as growth connectors will give a huge boost to industrial activities across India.”
Bimal Khandelwal (CEO, STT GDC India): “The Union Budget 2026 marks a decisive policy intervention that holistically addresses capital formation, demand creation, and long-term sustainability for India’s data centre sector. The proposed tax holiday till 2047 for foreign cloud providers using Indian data centres is expected to unlock increased foreign direct investment, position India as a preferred global digital infrastructure destination, and materially enhance its competitiveness in attracting hyperscale and AI-led workloads. This, in turn, will drive sustained demand for low latency, resilient digital infrastructure critical to enabling India’s Viksit Bharat 2047 digital economy agenda. We welcome the Government’s integrated approach, which aligns fiscal incentives with infrastructure readiness and sustainability priorities. At STT GDC India, we are well positioned to support this next phase of growth through scalable, AI-ready, and sustainable data centre infrastructure that underpins India’s digital future.”
Kaushik Banerjee, Co-Founder & CEO, flutrr: “The Union Budget 2026 presents a crucial pivot point for India’s digital economy at a time when platform-led businesses are redefining consumer behaviour and youth engagement. The government’s emphasis on building foundational digital infrastructure, strengthening data ecosystems, and creating long-term policy signals reflects an understanding of how deeply technology now underpins growth across sectors. Continued focus on measures that reinforce digital public infrastructure and cloud-first investment incentives will directly support platform-based innovation and scaling.
For Indian consumer-tech companies like Flutrr – competing with global players in dating and social discovery – this Budget should ideally complement digital momentum with regulatory clarity around AI, data portability, and platform governance, enabling responsible personalisation and stronger user trust. Aligning India’s startup ecosystem with global best practices while retaining a local cultural edge remains a priority.
At the same time, incentives that enhance access to growth capital, rationalise compliance burdens for early-stage tech firms, and support digital services exports will help domestic platforms translate innovation into global competitiveness. A long-term vision that supports digital entrepreneurship, talent retention, and culturally rooted consumer experiences will be key for India’s next chapter of tech-led growth.”
A Vikram Joshe, Founder and President, WAE: “The Union Budget 2026–27 offers incremental calibration rather than structural relief for India’s SME sector. The headline ₹10,000-crore SME Growth Fund marks a policy shift toward equity and scale-oriented financing, but its reach is inherently limited. It will benefit a narrow cohort of formal, growth-ready firms, while the vast majority of micro and small enterprises still grappling with thin margins, volatile demand, and delayed payments remain largely untouched. Liquidity reforms around TReDS are directionally sound, yet experience suggests platforms alone cannot correct entrenched power asymmetries between large buyers and small suppliers. Without strict enforcement of payment discipline, working-capital stress will persist. Importantly, the budget underplays demand-side constraints, tax complexity, and compliance friction factors that matter more than capital availability in the post-Covid landscape.In essence, this is a selective growth budget, not a broad-based SME revival plan. It advances long-term formalisation, but does little to alter the immediate ground reality for most SMEs“.
Tanuj Patro, CFO, HMD: “The increased ₹40,000 crore allocation for the Electronic Components Manufacturing Scheme is a strong boost for the telecom and electronics ecosystem, adding depth to domestic supply chains and helping India evolve from an assembly hub to a high-value manufacturing destination. Timely implementation, backed by robust infrastructure, will be critical to de-risk investments in advanced PCBAs, display assemblies and camera modules, enabling the transition from ‘Made in India’ to ‘Designed in India’.
The Semiconductor Mission 2.0 is equally commendable for its focus on materials, equipment and Indian-owned IP, strengthening full-stack domestic capabilities and positioning India as a future global semiconductor hub.
Notably, the 22-year tax exemption for data centres stands out as one of the smartest moves in Budget 2026, offering long-term policy certainty and accelerating foreign investment into India’s digital infrastructure, while the government’s focus on improving the debt-to-GDP ratio and fiscal deficit reinforces confidence in India’s macroeconomic stability.”
Divyajot Ahluwalia, Director at wTvision Solution Pvt. Ltd.: “The most consequential aspect of this Budget for the sports sector is its emphasis on continuity and system-building rather than isolated interventions. A decade-long roadmap through the Khelo India Mission acknowledges a long-standing reality that athlete development, infrastructure creation and industry growth cannot be achieved within short policy cycles. Equally significant is the recognition of sport as an economic sector, particularly through the focus on domestic manufacturing of sports equipment and an emphasis on structured leagues, competitions and sporting events. Well-organised and high quality broadcast competitions play a central role in building fandom, which is often the starting point for participation leading to a bigger shift.
With the right ecosystem in place, combining athlete development, competition structures and broadcast-led reach, these efforts have the potential to deliver the outcomes our government is aiming for. This is a direction that strengthens the sports system as a whole, and one that we stand firmly behind, committed in spirit and action, to help Indian sport grow in depth, relevance and scale, to a position of undisputed leadership.”
Salai Kumaran – CEO, IndiaLand Properties: “The budget creates a strong foundation for the next phase of real estate growth by aligning infrastructure development with evolving office demand in Tier II and Tier III cities. As these cities become more connected and investment-ready, innovative funding platforms like REITs and InVITs will play a crucial role in unlocking capital, accelerating project execution, and deepening investor participation.“
Sai Pattabiram, Founder & MD, Zuppa: “The increased defence allocation in Union Budget 2026 is an important and timely step for India’s indigenous drone industry. After Operation Sindoor, it is clear that drones are no longer optional equipment but essential tools for surveillance, border security and precision operations. This budget gives local manufacturers the confidence to invest in new technology, local production and skilled employment.
The focus on domestic procurement and localisation will strengthen the entire ecosystem from electronics and propulsion to AI-based payloads and components supplied by MSMEs. Building defence drones in India is about owning critical capabilities, not just assembling platforms. With continued government support, Indian companies can deliver reliable, battle-ready systems for our armed forces while also creating strong export opportunities. This budget moves India closer to becoming a global hub for defence drone innovation.”
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