IT and technology continue to be the cornerstone of India’s growth story. Budget 2026 strengthens this foundation with incentives for deep tech, AI, semiconductor ecosystems, cybersecurity, and digital public infrastructure. Key industry leaders respond to the budget.
Mr. 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.
Mr. 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.
Mr. 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
Mr. 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.
Vishnu Pillai, Financial Services Technology Leader and Office Managing Partner – Kochi, KPMG in India: The 2026 Union Budget, presented by Hon.FM Nirmala Sitharaman, outlines a strategic roadmap with profound implications for Kerala’s industrial and infrastructural landscape. A cornerstone of this vision is the announcement of a dedicated Rare Earth Corridor, positioning Kerala as a pivotal hub for critical mineral mining and processing. This initiative, which leverages the state’s abundant mineral resources, is expected to catalyze high-tech manufacturing and research, particularly in the defense and space sectors.
Furthermore, the budget’s record ₹12.2 lakh crore capital expenditure provides a significant tailwind for the state’s ambitious transport projects. Federal support is anticipated to complement state-led initiatives such as the Regional Rapid Transit System (RRTS) and the expansion of the Vizhinjam International Seaport. These developments, coupled with the “Coastal Cargo Promotion Scheme,” aim to double the share of inland waterways and coastal shipping, enhancing Kerala’s role in global logistics – as also is the ecosystem envisaged for ship-repair.
By integrating the state into national semiconductor and green energy missions, the budget facilitates a transition toward a knowledge-driven economy. For Kerala, these measures signal a future defined by enhanced connectivity, industrial modernization, and a robust framework for job creation in emerging technological corridors.
Kishan Sundar, SVP and Chief Technology Officer, Maveric Systems: Union Budget 2026 makes it clear that AI and IT services will play a central role in shaping the next phase of India’s banking and financial services growth. As credit demand remains strong and banks operate under tighter funding and regulatory conditions, the emphasis on digital infrastructure, AI-led innovation and technology-enabled productivity is both timely and necessary.
The Budget’s focus on strengthening IT services and deepening digital capabilities provides added momentum for banks to accelerate AI adoption across credit decisioning, risk management, compliance and customer engagement. With increasing system complexity and scale, AI-driven automation and data-led decisioning are becoming essential for banks to grow responsibly while improving efficiency and resilience. Overall, the Budget reinforces technology as a foundational pillar for sustainable growth in the banking ecosystem.
Raghav Gupta, Founder & CEO, Futurense: Budget 2026–27 reinforces India’s intent to lead in the AI age by putting talent and capability building at the centre of national progress. The government’s three Kartavya – driving growth, strengthening people’s capacity and ensuring opportunity for all align strongly with the direction in which the technology ecosystem is moving.
The introduction of the Capacity Building AI Missions for 25 crore people, along with support for the National Quantum Mission, Anusandhan Research Fund, and the R&D and Innovation Fund, signals a long term commitment to creating both the talent and the infrastructure required for an AI-native economy. This is not just an investment in technology but an investment in people. By expanding access to advanced learning and accelerating innovation pathways, the Budget lays the groundwork for a workforce that can build, deploy and lead with AI across global industries. It opens the door for deeper industry, academia collaboration and a future defined by capability, confidence, and opportunity.
Nikita Kumawat, Co-Founder and Executive Director, Brandworks Technologies: Union Budget 2026 marks a significant change in India’s electronics and semiconductor journey, shifting the focus from capacity creation to long-term capability development. The introduction of the Indian Semiconductor Mission 2.0 and the launch of the Shakti initiative, coupled with an enhanced financial outlay of Rs 40,000 crore, further strengthen the ecosystem and reflect the government’s commitment to building a future-ready ecosystem across equipment, materials, full-stack IP, and resilient supply chains.
The focus on domestic component manufacturing, R&D, and workforce upskilling is a critical step towards strengthening India’s position in the global electronics value chain. These measures will reduce import dependence and create the foundation for innovation-led, sustainable growth.India’s next phase of progress will be driven by companies that integrate design, engineering, and advanced manufacturing at scale, for which Budget 2026 lays the groundwork. This transition reinforces India’s ambition to emerge as a global hub for electronics and semiconductor innovation.
Nakul Kundra, CEO & Co-Founder, Devnagri: The Union Budget 2026 strengthens the Government’s initiative to make technology, especially AI, a core driver of India’s next growth phase. Equally encouraging is the Budget’s emphasis on applied technology adoption, from AI-driven customised advisory tools and multilingual platforms like Bharat Vistar, to the use of AI for more efficient, transparent along with data-driven governance and is highly celebrated and reflects a strong commitment to integrating such initiatives at scale. Initiatives such as the ₹10,000 crore MSME Growth Fund and the renewed focus on cities as growth engines can meaningfully democratise AI beyond large enterprises, particularly across manufacturing and public services. That said, real impact will depend on execution, specifically lowering compute costs, expanding domestic data-centre capacity, enabling language-first AI systems, and building high-quality Indian datasets anchored in data dignity, consent, and trust.
Mr. Warren Harris, CEO & MD, Tata Technologies Ltd: The Union Budget 2026 is a masterclass in structural reform, decisively positioning India as the world’s preferred engine for advanced manufacturing, digital engineering, and sustainable innovation. The government’s focus on rare earth permanent magnet corridors will significantly strengthen domestic supply chains critical for EVs, aerospace and advanced electronics sectors, which rely on deep engineering expertise. By launching India Semiconductor Mission (ISM) 2.0 with a fortified INR 40,000 crore outlay for electronics manufacturing, the government has transitioned our ecosystem from assembly-led growth to high-value, full-stack IP and component sovereignty. The strong push on STEM education, AI integration and large-scale youth skilling is equally impactful. Initiatives to embed AI-enabled learning systems and expand research infrastructure reflect a clear commitment to building future-ready talent for Industry 4.0.
At Tata Technologies, we welcome this Budget as a strong enabler of the Viksit Bharat vision, reinforcing India’s ambition to emerge as a global leader in digital engineering and R&D. Enhanced support for electronics manufacturing, including the expansion of component incentives to INR 40,000 crore along with streamlined IT services frameworks and higher safe harbour thresholds of INR 2,000 crore will further strengthen India’s innovation ecosystem. Incentives for aviation manufacturing and MRO will accelerate high-value engineering opportunities across mobility and aerospace.
Overall, this Budget creates a robust platform for innovation-driven growth, advanced manufacturing and global technology leadership.
