With Finance Minister Nirmala Sitharaman set to present the Union Budget 2026-27 on February 1, 2026, at 11 AM marking the first-ever Sunday presentation in India’s budget history industry leaders are voicing strong expectations for measures that accelerate AI adoption, bolster early-stage innovation, strengthen deep-tech manufacturing, and empower MSMEs. As India pushes toward Viksit Bharat @2047, the budget is seen as pivotal for building an inclusive, future-ready economy through accessible skilling, patient capital flows, and supportive policies for high-complexity sectors.
Stakeholders emphasize affordable AI education, tax incentives for venture funds, localization in advanced manufacturing, and modernized credit mechanisms to sustain growth momentum amid global uncertainties.
Making AI Learning Accessible to Fuel India’s Growth Engine
Arjun Nair, Co-founder of Great Learning, stresses the democratisation of AI skills: “AI is set to be one of the strongest drivers of economic growth over the next decade, but its real impact will depend on how widely people can access and learn this technology. In India, where a large share of the workforce is young, short-term and online learning has become the most practical way to build AI skills alongside work. Keeping these pathways affordable is critical so that AI does not become a capability reserved for a privileged few.”
He adds: “As building AI capabilities continues to be a national priority, there is a clear and immediate need to ensure that AI education remains accessible at scale, through sensible taxation, affordable learner financing, and sustained support for education and skilling providers. Making AI learning widely available is not just about technology; it is about building a future-ready, inclusive workforce that can drive the country’s next phase of growth.”
Unlocking Patient Capital and Sectoral Momentum for Startups
Pratip Mazumdar, Co-founder & General Partner at Inflexor Ventures, welcomes continued capex focus while seeking fund-level reforms: “Inflexor Ventures welcomes the Government’s continued focus on capital expenditure and digital infrastructure heading into the Union Budget 2026. As an early-stage technology investor, we believe the Budget is an opportunity to convert India’s scale in digital adoption into a durable competitive advantage for home-grown startups and for the funds that back them.”
He highlights targeted measures: “At the fund level, we want to see measures that broaden the flow of patient, risk capital into early innovation— clearer tax incentives for venture and AIF structures, targeted relief on capital-gains pass-through where it encourages reinvestment into startups, and pragmatic clarity around compliance costs that disproportionately burden small funds and seed-stage companies.”
Mazumdar also calls for catalytic support in AI infrastructure, cybersecurity, fintech, climate-tech, green hydrogen, and healthcare R&D to help startups scale globally.
Advancing High-Trust Manufacturing and Export Competitiveness
Chanakya Gone, CTO of Makers Hive, notes progress in manufacturing execution: “Over the last two Union Budgets, India has moved from intent to execution on manufacturing. Sustained public capex, a sharper push for value addition, and customs rationalisation are strengthening the base for globally competitive production, not just assembly.”
He outlines key levers for deep-tech hardware like bionic devices: “From our experience building KalArm, a high-complexity bionic hand designed and manufactured in India, the next leap comes down to three levers. First, make quality and compliance a national export infrastructure… Second, deepen the component stack… Third, align capital and procurement to deep-tech timelines.”
Gone concludes: “If these three levers are strengthened, India can credibly position itself as a global hub for high-trust, high-complexity manufacturing.”
Empowering MSMEs with Modern Credit and Simplified Compliance
Alok Mittal, Co-founder and Executive Chairman at Indifi Technologies, positions MSMEs as central to growth: “As India heads into Union Budget 2026, MSMEs remain at the centre of the country’s growth agenda, contributing nearly 30 percent to GDP and employing close to 30 crore people. With formalisation and digital adoption accelerating, the focus is now on enabling MSMEs to scale with confidence.”
He expects: “At Indifi, we believe the Budget should modernise credit guarantee frameworks to enable more collateral-free, cashflow-based lending and strengthen lender confidence, while simplifying GST and compliance requirements to ease operational burdens for small businesses. It should also prioritise awareness and financial literacy, so entrepreneurs can effectively access and leverage government schemes and digital financial tools to drive sustainable, long-term growth.”
Investing in Education as Nation-Building
Dr Madhavan Nair Rajeevan, Vice Chancellor of Atria University, views education spending as strategic investment: “For an aspiring nation like India, expenditure on education is not a cost but an investment in nation-building. India should steadily move towards allocating 6% of GDP to education in the coming years. A National Teacher Development Mission should be launched to continuously upgrade teacher capacity and professionalism, alongside major strengthening of digital public infrastructure for education.”
He advocates for higher education reforms: “In higher education, India should establish well-funded, multidisciplinary research universities with world-class laboratories and global-quality faculty. A revitalisation grant mechanism should be introduced for state and private universities for their contribution to the knowledge economy. Public–private partnerships must be actively encouraged, backed by transparent governance and measurable outcomes.”
As the Union Budget 2026-27 approaches on February 1, 2026, these expectations highlight a shared vision for policies that democratise AI and skilling, fuel innovation capital, elevate manufacturing depth, ease MSME financing, and prioritise education. Such reforms could position India strongly for inclusive, tech-driven growth in the coming decade.
Last Updated on: Wednesday, January 28, 2026 5:12 pm by Monisha Angara | Published by: Monisha Angara on Wednesday, January 28, 2026 5:12 pm | News Categories: News
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