Budget 2026: What India’s Tech Industry is Saying?

Key Highlights of Budget 2026:

  • Budget 2026 outlines targeted technology measures across semiconductors, AI, electronics, and digital infrastructure.
  • Electronics Component Manufacturing Scheme funding is doubled to ₹40,000 crore.
  • AVGC labs expand to schools and colleges through a national rollout.
  • Consumer technology and cybersecurity receive limited direct attention.

Budget 2026 places targeted emphasis on semiconductors, electronics components, AI applications, and digital infrastructure. As details emerge, industry leaders are weighing what the announcements mean for production, talent pipelines, and long-term policy execution.

Here is how the technology industry is responding to Budget 2026:

Deeper push on electronics and local IP

“Budget 2026-27 is a decisive signal that India is now playing for depth, not just scale, in electronics — doubling the push on ECMS, expanding electronics PLI to ₹40,000 crore, and rolling out Semiconductor Mission 2.0 across equipment, materials, supply chains and Indian IP. This is how we move from being an assembly base to building a resilient, high-value, India-led ecosystem — de-risking investments in components like display assemblies, camera modules and advanced PCBA, strengthening capital-goods capability through high-tech tool rooms, and cutting import dependence while boosting export competitiveness. For Ai+ Smartphone and NxtQuantum, it creates the runway to deliver on our core belief — ‘Made in India’ must mean ‘Designed in India’ — by building software-first, India-governed products and a trusted device ecosystem anchored in Indian-owned IP and stronger local manufacturing depth.”

– Madhav Sheth, CEO and Founder, Ai+ Smartphone and NxtQuantum Shift Technologies

“This Budget makes a strong and timely push towards building a workforce that is ready for the future and aligned with India’s Viksit Bharat 2047 goals. By placing skill development and industry-linked education at the core of its agenda, the government has clearly acknowledged the need to bridge the gap between learning and employability. The proposal to develop university townships near industrial corridors and to set up an Education to Employment and Enterprise Standing Committee reflects a practical, outcome-focused approach, especially for strengthening the services sector.

The continued emphasis on research, innovation, and digital learning will play an important role in scaling up skilling and reskilling efforts across the country. Equally important is the reduction in TCS from 5% to 2% on education and medical expenses, which will ease financial pressure on learners and working professionals and encourage greater participation in higher education and career progression.”

– Ranjita Raman, CEO Jaro Education

A boost for women-led growth in IT sector

“The Union Budget 2026- 27 marks a decisive shift toward inclusive, technology-driven economic leadership, with strong structural enablers for women entrepreneurs and women leaders in IT and AI. Safe harbour threshold for IT services increased from ₹300 crore to ₹2,000 crore which significantly reduces regulatory friction and tax uncertainty, enabling women IT leaders to scale global delivery models, lead large transformation programs, and invest confidently in AI-led innovation. Apart from this expansion of digital and creator labs will also strengthen future-ready talent pipelines. Launch of SHE (Self-Help Entrepreneur) Marts, marks a shift from welfare to women-led enterprise ownership, opening opportunities for aspiring women entrepreneurs to build scalable businesses, supported by digital platforms, AI tools, and commerce enablement. Budget 2026-27 moves beyond symbolism for women, it creates real enablers.”

– Priyanka Rao, Assistant Vice President, Information Technology, Genpact

Supports job creation in tech sector

“The Union Budget 2026 is good news for young workforce. Families will save money and more people will be able to get a good education as the TCS on education and medical costs is lowered from 5% to 2%. This is especially important now that everyone needs to learn new skills.

The government’s strong focus on growth driven by technology is what stands out the most. The emphasis on artificial intelligence, emerging technologies, and industry-led research aligns well with the realities of today’s job market, where roles are evolving faster than traditional education systems can keep pace. Initiatives like the proposed ‘Education to Employment and Enterprise’ Standing Committee acknowledge a long-overdue need to bridge the gap between degrees and real-world employability, especially in the services and tech sectors.

Future-ready jobs and India’s ability to compete internationally in high-value digital services will be greatly aided by the ongoing push for structured skilling, training facilities, and innovation-driven ecosystems. The introduction of ISM 2.0 with an outlay of 40,000 crores will enhance India’s long-term aspirations in the semiconductor industry, but this budget’s greater significance comes from its dedication to developing competent personnel, encouraging creativity, and creating long-term job opportunities for the upcoming generations.”

– Prateek Shukla, Co-Founder & CEO, Masai

The views expressed above are personal opinions of the individuals quoted and do not reflect any sponsorship or endorsement by the platform.

167 Views