As India heads into the Union Budget season, industry leaders are looking beyond headline tax tweaks to signals of how seriously the government intends to back its next phase of growth. From artificial intelligence and deep tech to manufacturing, startups, and digital infrastructure, expectations are centered on whether policy will keep pace with the speed at which Indian enterprise is transforming. With global capital tightening and automation reshaping jobs, this year’s pre-Budget discussions are less about stimulus and more about strategic direction, how India plans to scale innovation, support emerging technologies, and strengthen its position in an increasingly competitive global tech economy.
The Tech Panda asked industry players what their expectations are from the upcoming Union Budget 2026.
AUTOMOTIVE
Sai Sridhar, Managing Director, Elektrobit India
“As India’s automotive industry rapidly shifts toward software-defined and connected vehicles, Budget 2026 needs to directly address gaps in automotive software security and digital mobility. As the vehicles are increasingly being brought under the control of software, connection and data, the industry is seeking specific incentives to help fund the R&D of secure software architecture, cybersecurity validation, and global accolades against a handful of regulations like the UNECE R155 and R156.”
“In addition to software, policy support in enhancing the local testing, validation, and homologation infrastructure, particularly connected and electric vehicles, is expected in the automotive sector as well. Skills development rewards will play a vital role in the development of expertise in software-defined, cyber-resilient car systems. An established regulatory framework, including fiscal policies, can help OEMs and tech providers to be more innovative without jeopardizing vehicle safety, data security, and competitiveness on the global scale. Future-oriented Budget can make India a reliable destination of the future secure automotive technologies.”
HARDWARE
Chitranshu Mahant, CEO & Co-founder, Primebook India
“Budget 2026 should broaden India’s technology focus beyond hardware incentives and explicitly recognise the operating system and software layer as critical digital infrastructure. As a brand which is building computing experiences for Indian users, we believe targeted policy support for indigenous OS development, software R&D, and platform innovation can reshape how people access productivity tools. Incentives for OS-led experimentation and local software ecosystems would help create computing systems that are intuitive, scalable, and aligned with Indian usage realities.”
MANUFACTURING
Naresh Kumar, COO, Lauritz Knudsen Electrical and Automation
“As India prepares for the Union Budget 2026, there is a clear opportunity to place productivity at the core of the country’s manufacturing strategy. Manufacturing is central to India’s ambition of becoming a developed economy by 2047, yet its contribution to GDP must rise meaningfully if this vision is to be realised.
“Productivity represents India’s largest untapped manufacturing advantage. A significant portion of the industrial base is approaching a natural modernisation inflection point, creating an opportunity to leapfrog legacy systems and embed automation, digital intelligence, and clean energy directly into factory design. This shift can position Indian manufacturing to compete globally by design and performance, not by cost alone.
“Energy efficiency and reliability are critical levers in this transformation. Manufacturing accounts for a substantial share of India’s energy consumption, and improving energy intensity through clean energy integration, smart electrical infrastructure, and advanced energy management systems will be essential as industrial output scales. In parallel, reducing unplanned downtime through predictive maintenance and real time monitoring can materially improve operational resilience and supply chain reliability.
“The upcoming Budget can accelerate this transition by supporting investments in automation, digitalisation, predictive technologies, and renewable ready industrial infrastructure, particularly for MSMEs. Productivity led growth will determine whether Indian manufacturing merely expands in scale or truly emerges as a global leader.”
Ritesh Goenka, Managing Director, Damson Technologies
“We have successfully moved from ‘Imported in India’ to ‘Assembled in India’; the 2026 Budget must now build the bridge to ‘Engineered in India.’ For brands like Just Corseca investing heavily in local infrastructure, the focus must shift from basic assembly incentives to deep-tier manufacturing.
We need a fiscal runway that rationalises duties on high-tech capital machinery and incentivises domestic R&D for core components like PCBAs and batteries. The government has given us the volume; now we need the policy support to own the value. This budget should be about empowering Indian brands to own the intellectual property, not just the factory floor.”
Shishir Gupta, Co-founder & CEO, Oakter
“We at Oakter expect the Union Budget 2026–27 to strengthen India’s ambition to become a global hub for original design manufacturing and electronics innovation, not just assembly-led production. For companies building products from concept to scale in India, the priority must be design-linked incentives, deeper component localisation, and easier access to working capital. Expanding and refining PLI support for ODM-led manufacturing, alongside targeted incentives for batteries, power electronics, IoT hardware, and semiconductor-linked supply chains, will significantly improve global competitiveness. The Budget should also focus on lowering the cost of manufacturing through stable GST structures, faster input tax credits, and infrastructure support for automated factories. This will enable Indian manufacturers to move up the value chain, create IP-driven products for global markets, and position India as a trusted source of world-class, innovation-led electronics manufacturing.”
Aatish Hundia, Director, EVM India
“Over the last few years, the government’s consistent push has helped India’s electronics manufacturing ecosystem come of age. At a time when global storage and memory prices are under pressure, a continued focus in this Budget on local value addition, testing capabilities, and quality-led manufacturing can go a long way in reinforcing India’s position as a dependable and competitive base for consumer electronics.”
GEOSPATIAL INFRASTRUCTURE
Rahul Jain, Managing Director, Matrix Geo Solutions
“We at Matrix Geo Solutions expect the Union Budget 2026–27 to accelerate India’s infrastructure and digital transformation by strengthening policy support for geospatial technologies, drone-based surveying, and data-driven planning. Priority should be given to wider adoption of LiDAR, GIS, photogrammetry, and AI-enabled geospatial analytics across national infrastructure, water resources, disaster management, and urban development programs. Enhanced allocations for geospatial data infrastructure, streamlined drone regulations, and incentives for indigenous technology development will improve project accuracy, speed, and cost efficiency. The Budget should also encourage integration of geospatial intelligence with BIM, digital twins, and smart infrastructure platforms. Such measures will enable better decision-making, faster execution of large-scale projects, and position India as a global leader in geospatial engineering, modern surveying, and technology-driven infrastructure development”.
ELECTRIC VEHICLE
Sameer Moidin, Founder & CEO, EVeium Smart Mobility
“The Union Budget 2026–27 must capitalize on the momentum of India’s electric two-wheeler segment, which dominated the EV market in 2025 and already serves millions of daily commuters. The focus should be on Make in India electric two-wheelers that are not just assembled locally, but designed, manufactured, and scaled domestically to create jobs, build resilient supply chains, and reduce import dependency. Incentives should drive battery localisation, affordable financing, and mass-scale production, while sustained investment in robust, widely accessible charging infrastructure will make EVs practical for all users, not just urban elites. At EVeium, we believe this Budget has the power to turn India’s electric mobility promise into reality, making EV ownership accessible, supply chains stronger, and domestic manufacturing world-class, cementing India’s position as a global EV leader.”
Madhumita Agrawal, Founder & CEO, Oben Electric
“Oben Electric views the Union Budget 2026-27 as a vital opportunity to strengthen India’s electric mobility journey. While 2025 was a landmark year with EV sales reaching a record 2.3 million units, anchored by 1.28 million two-wheelers, the industry’s long-term health depends on structural tax reforms. A primary concern for domestic manufacturers is the inverted tax structure. While finished EVs attract a 5% GST, the raw materials sourced to build these vehicles are taxed at 18%. This 13% disparity traps vital working capital across the industry, driving up production costs and straining liquidity. Aligning the GST on all EV components to a uniform 5% is essential to support domestic manufacturing and make ‘Make-in-India’ EVs more affordable for the mass market. Furthermore, we believe the next wave of adoption will be led by electric motorcycles. While scooters have seen early success, motorcycles dominate with nearly 70% of India’s two-wheeler landscape but remain significantly under-electrified. To achieve our national 2030 targets, the budget should introduce targeted subsidies and demand incentives specifically for electric motorcycles. Prioritizing this dominant segment will unlock the next level of mass-market electrification and move India closer to a truly self-reliant EV ecosystem.”
Kunal Arya, Co-founder & MD, Zelio E Mobility
“We at Zelio E-Mobility believe India’s electric mobility transition will be driven primarily by two-wheelers, where affordability, daily usability, and scale are the most critical factors. Ground-level adoption trends show that sustainable EV growth depends more on long-term structural enablers than short-term subsidies, making policy stability increasingly important for manufacturers. The Union Budget 2026–27 should prioritise deeper localisation through component-specific PLI support for battery cells, controllers, and power electronics to reduce import dependence and strengthen Make in India. Rationalising GST on electric two-wheelers and enabling priority-style, low-cost financing can accelerate mass adoption more effectively than one-time incentives. A clear national charging roadmap, including a target of 50,000 public charging points by 2027 and mandatory chargers at highways and fuel stations, along with longer-tenure capital, will be essential to building a scalable and resilient EV ecosystem.”
INFORMATION TECHNOLOGY
Girish Hirde, Global Delivery Head, InfoVision
“As India’s IT services industry and GCC ecosystem continue to scale, the upcoming Union Budget presents an opportunity to reinforce the fundamentals that enable consistent, high-quality delivery. Continued investment in secure, reliable digital and physical infrastructure will further strengthen India’s position as a preferred destination for global capability centers and long-term client programs. In parallel, clear policy direction on AI adoption and workforce readiness will be critical to building a world-class, innovation-driven engineering talent base that can deliver sustained value with confidence and predictability.”
LOGISTICS
Taranbir Singh, Founder & Chief Executive Officer, Bharat Supply
“As India’s consumption story deepens beyond metros, the Union Budget holds an opportunity to meaningfully strengthen last-mile and beyond-metro logistics. A key step would be to simplify and rationalise GST for logistics, particularly last-mile delivery services, to lower operating costs and unlock new private investment. Equally important is sustained focus on rural consumption, where logistics is the critical backbone connecting farmers, MSMEs, and small retailers to markets. We need to ensure sustained investments in rural infrastructure, technology adoption, and financial inclusion to bring India’s logistics costs, currently at 14–16% of GDP, closer to global benchmarks.”
Smitha Shetty, Regional Director, APAC, Achilles Information Limited
“As India looks ahead to Budget 2026, there is a real opportunity to strengthen the foundations of the country’s supply chains in ways that go beyond short-term incentives. Reducing strategic dependence on a limited set of geographies will depend on thoughtful policy support that improves logistics, deepens domestic supplier ecosystems and builds long-term industrial capability, alongside fiscal measures.
“We are already seeing strong momentum across industries to rethink how supply chains are designed and managed. Climate volatility, geopolitical shifts and rising sustainability expectations are encouraging organizations to seek more stable, transparent and data-driven supply networks. In this environment, budget measures that support greater supply chain visibility, help MSMEs connect into global value chains, and invest in logistics and critical inputs can play a meaningful role in strengthening India’s global competitiveness. Over time, this will also help businesses manage risk more effectively while advancing sustainability and resilience across the wider economy.”
EDTECH
D L Prachotan, Co-Founder & Head of Business Development, Bhanzu
“I personally believe that India’s entrepreneurial landscape has transformed dramatically in the last few years. We are transitioning from job seekers to job creators. This shift in mindset is one of the greatest achievements of our economic and start-up policy framework. As India is awaiting for the next budget, my expectation is that the government will double down on enabling this momentum wherein we not just create more opportunities for Indian entrepreneurs but also build strong ecosystems which attract global talent. I believe we as a country are ready to have the best minds of the world who choose to make in India.”
CLEANTECH
Shyam Sunder Jindal, Promoter, BC Jindal Group
“FY26 marks a defining period for India’s power sector, with significant capacity additions driven predominantly by renewable energy. As clean power generation gathers significant pace, installing energy storage solutions will become crucial in shaping the sector’s next phase of growth. In the upcoming Budget 2026, favourable regulations and policies that enable the seamless deployment of large-scale battery storage infrastructure and solutions alongside renewable projects are expected to guide the industry’s expansion. We are observing the commissioning of large-scale initiatives that focus on deploying solar rooftop infrastructure, and, therefore, interventions that support project financing and address supply-chain bottlenecks will aid growth at scale. Further, strengthening the policy framework to enhance skilled employment generation will have a positive impact on the industry’s competitive advantage in the long-term, contributing meaningfully to India’s transition to clean energy,”
Teppo Hemiä, Founder & CEO, Wirepas
“As India enters the next phase of its energy transition, the Union Budget 2026–27 has an opportunity to strengthen how the country builds and operates its digital power infrastructure. While electrification and renewable integration have made strong progress, the focus must now shift to intelligence, resilience, and operational efficiency across the grid.
“One of the most critical areas is power distribution, where the rapid rollout of smart meters, rooftop solar, electric vehicles, and distributed energy resources is increasing grid complexity. Budget support that accelerates Advanced Metering Infrastructure beyond billing use cases, toward grid operations, power quality monitoring, and demand-side flexibility, will unlock far greater value from existing investments.
“Equally important is grid-edge intelligence enabled by interoperable, standards-based IoT connectivity. Supporting scalable, cost-efficient connectivity options and long-term lifecycle-efficient infrastructure will help utilities adapt to evolving requirements without repeated asset replacement. A forward-looking Budget can ensure India’s energy infrastructure is not only large-scale, but future-ready and resilient.”
Sanjay Choudhari, Chairman, SBL Energy
‘The forthcoming Union Budget 2026 calls for a transformative opportunity to substantially boost India’s infrastructure and mining sectors. We strongly anticipate strong initiatives that indicate significant capital investment into large-scale projects, incentivise the adoption of innovative green technology, and rationalise duties on critical materials to reduce cost constraints. Besides this, streamlined regulatory frameworks, like single-window approvals, are critical for promoting ease of doing business and unlocking private investment. Such forward-thinking changes would spur innovation, boost global competitiveness, and establish India as a leader in long-term industrial growth. A visionary budget would not only stimulate economic growth, but will also strengthen the country’s commitment to resilience, self-reliance, and environmental care.’
DATA CENTRES, CLOUD & DIGITAL SOVEREIGNTY
Narendra Sen, Founder & CEO, RackBank & NeevCloud
“As we move from vision to execution, Budget 2026 must recognize that Data Centers are the new sovereign territory and AI is the new electricity. While the projected 1.7 GW capacity is a milestone, our focus must shift from just ‘housing’ hardware to ‘powering’ intelligence.
“To truly build an Atmanirbhar AI ecosystem, we need a Production Linked Incentive (PLI) for Compute that prioritizes indigenous cloud platforms over foreign hyperscalers. By treating AI infrastructure as a strategic national asset—similar to highways or power grids—we can ensure that India’s data remains within India’s legal framework, securing our digital sovereignty for decades to come.
CYBERSECURITY & DIGITAL TRUST
Sunil Kr. Sharma, Managing Director & Vice President, Sales (India & SAARC) Sophos
“India’s digital economy continues to grow rapidly, requiring a commitment to cybersecurity as a fundamental component of creating an economy built on trust, economic growth and resilience as a nation. With budget 2026, we are now in a position to elevate cybersecurity as a strategic priority and make targeted investments to build cyber resilience across multiple sectors including BFSI, healthcare, government, MSMEs and more. We want to see continued policy support for AI based threat detection and ransomware prevention, as well as secure cloud adoption. This should also include incentives for the MSME sector to assist in improving their security posture. Additionally, it is essential to continue investing in developing cybersecurity skills, as well as developing stronger relationships between the public and private sectors to facilitate sharing of threat intelligence and help keep India’s future in the digital space secure and resilient.”
Pankit Desai, CEO & Co-Founder, Sequretek
“To truly strengthen ‘Make in India,’ we need more than lip service. Government departments must be encouraged to prioritize local procurement. Just like other compliances such as MSMEs and payments, a clear enforcement mechanism will prevent resistance from those favouring multinational products due to personal preferences.
“Second, for exports to thrive, India-based companies need stronger support in accessing international markets. While some support exists, resources—both financial and human—are fairly anaemic. The government should actively facilitate global business expansion, like sponsoring participation in international fairs.
“Finally, while funds for AI and cybersecurity are earmarked, their operational use needs clarity. Government budgets should focus on boosting cyber efficiency through Indian companies. Creating a dedicated fund, modelled on existing frameworks like the Fund of Funds, can channel resources more effectively and drive real progress in cybersecurity.”
CEMENT
Maitri Vira, Assistant Vice President & Sector Head, ICRA Ltd
“The likely sustained focus on infrastructure development, rural economy, and affordable housing in the upcoming Union Budget FY2027 is expected to augur well for the cement sector and ICRA projects 6–7% cement demand growth in FY2027. Currently, rural housing and infrastructure together account for 50–55% of cement consumption, underscoring their importance to the sector. Increased Government allocations towards roads, railways, metro projects, and urban infrastructure should translate into healthy volume visibility for cement manufacturers. While the full impact of GST rate rationalisation remains to be seen, sustained infrastructure spending and policy stability are expected to provide earnings visibility for cement companies.”
RAILWAYS
Suprio Banerjee, Vice President & Co-Group Head, ICRA Ltd
“ICRA anticipates a range-bound increase in Railways’ budgetary allocation for FY2026–27, given the trend seen over the past two years (~5% YoY growth in FY2025 and FY2026BE to reach Rs. 2.65 lakh crore, including EBR of Rs. 10,000 crore). With electrification nearly complete, focus will remain on decongestion through capacity augmentation—new routes, gauge conversion, track doubling, and dedicated freight corridors. Infrastructure modernisation, including rolling stock upgrades and station redevelopment, alongside safety enhancements, will remain critical. Within capacity expansion, economic corridors (e.g. ports and mineral logistics) coupled with accelerated deployment of Kavach 4.0 and advanced signalling across the network, are expected to dominate both budgetary priorities and execution strategies.”
FMCG
Ankush Jain, CFO, Proventus Agrocom Limited (ProV)
“In recent years, India’s FMCG and food ecosystem has witnessed a meaningful shift, with consumers becoming more conscious about nutrition, transparency, and quality of the food they are having. The transition towards healthy outsourcing is leading the evolution and has encouraged brands to innovate responsibly and build products that balance health with accessibility. As India is awaiting the upcoming budget 2026-27, the expectation speaks out loud this time demanding the government to continue strengthening support for food innovation, healthy living, sustainable sourcing & packaging, and modern retail infrastructure. It’s equally important to strengthen our positioning in terms of bringing forth initiatives such as the newly constituted Makhana Board and the ?476.03 crore makhana development scheme (2025–2030), thereby we as a healthy snacking brand anticipate increased focus on research and development, access to quality seeds, farmer training, and modernization of processing capabilities. Reemphasizing policy measures around Agri-value chains, clean-label manufacturing, and MSME-led food entities is surely expected to go a long way in creating a resilient, future-ready snacking ecosystem. We believe India has the potential to emerge as a global hub for better-for-you healthy food alternatives, driven by local innovation and world-class standards.”
AGRICULTURE
Soumyak Biswas, Partner, Agriculture, Government Advisory, BDO India
“India’s agriculture sector, though employing nearly 45% of the workforce, contributes only around 18% to national GVA, reflecting low productivity, limited value addition, and persistent structural challenges. Small and fragmented landholdings, inadequate investment in allied sectors, high post-harvest losses, and underfunded research continue to restrict growth. The upcoming Budget offers an opportunity to strengthen long-term resilience through targeted interventions. Priorities include scaling research and climate-smart agriculture by increasing funding for DARE, promoting PPP-led innovation, and supporting climate-resilient practices such as micro-irrigation and regenerative farming. Strengthening allied sectors, livestock, fisheries, horticulture, and expanding cold-chain and processing infrastructure can significantly boost farmer incomes. Empowering FPOs through market-linked product strategies and credit guarantees will help small producers integrate into value chains. Incentivising diversification into horticulture, pulses, and oilseeds can reduce overdependence on water-intensive crops. Accelerating technology adoption through digital equipment subsidies, shared tech centres, and subsidised advisory services will improve productivity for small farmers. Enhanced credit access, insurance coverage, and climate-risk buffers will further stabilise incomes. A re-imagined and well-funded agricultural strategy can ensure rural prosperity, food security, and sustainable growth.”
