The Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman on February 1, 2026, builds on India’s growth momentum with a Yuva Shakti-driven approach, focusing on transforming the country’s demographic dividend into productive capacity through skilling, employment, enterprise creation, and inclusive development. The budget maintains a strong emphasis on infrastructure (with record capital expenditure of ₹12.2 lakh crore, or about 3.1% of GDP), manufacturing in strategic sectors, digital and services reforms, and emerging areas like biopharma, cultural economy, and preventive healthcare. The fiscal deficit is targeted at 4.3% of GDP, reflecting continued prudence amid global challenges.

Key announcements include the launch of the Biopharma SHAKTI scheme with a ₹10,000 crore outlay over five years to position India as a global hub for biologics, biosimilars, and precision medicine. Tax reforms for the IT and services sector feature a unified “Information Technology Services” category with a common safe harbour margin of 15.5% and the eligibility threshold raised from ₹300 crore to ₹2,000 crore, alongside automated approvals to enhance certainty and attract global capability centres (GCCs). In the cultural and creative space, initiatives like the Mahatma Gandhi Gram Swaraj initiative, the National Handloom and Handicraft Programme, and community-owned SHE-Marts aim to strengthen handloom, handicrafts, khadi, and women-led enterprises through skilling, cluster modernization, global linkages, and branding. Additional focus areas encompass clinical research, life sciences, food safety, nutrition transparency, and longevity science.

Industry leaders from creative enterprises, workplace design, medical education, health tech, and longevity have welcomed these measures as steps toward integrated, innovation-led, and inclusive ecosystems.

Yosha Gupta, Founder & CEO of MeMeraki, highlighted the cultural economy boost: “The Union Budget 2026–27 brings some renewed focus to India’s cultural and creative economy, from strengthening handloom and handicrafts through the Mahatma Gandhi Gram Swaraj initiative and the National Handloom and Handicraft Programme to investments in design education, AVGC skilling, and heritage digitisation. The push to modernise clusters, deepen skilling, and build global market linkages is directionally important and aligns with MeMeraki’s mission of enabling master artisans engage with digital tools and global audiences. Initiatives like SHE-Marts also point to an intent to support women-led enterprise and inclusive growth. Going forward, the real opportunity lies in aligning documentation, skills, market access, and enterprise support into a truly connected ecosystem, while also positioning craft more clearly as one of India’s most powerful forms of soft power and cultural export. Greater clarity on international duties and trade facilitation for handcrafted goods would be a critical next step in enabling traditional artists, SHGs, and creative entrepreneurs to engage with scale, continuity, and sustainable livelihoods, and to enable India’s rich artistic heritage to compete meaningfully in global cultural markets.”

Akshay Lakhanpal, CEO India at Space Matrix, praised the IT and GCC reforms: “India’s Budget 2026 sends a strong signal to global capability centres and multinational firms that India wants to be the world’s most efficient hub for technology and services. By recognising all software development, IT-enabled services, knowledge process outsourcing and contract R&D under a single Information Technology Services category, and introducing a common safe harbour margin of 15.5% with the threshold raised from ₹300 crore to ₹2,000 crore, the government has sharply improved tax certainty and ease of doing business for GCCs and international companies looking to expand here. Safe harbour approvals moving to an automated, rule-driven system further reduce friction and subjectivity, which is exactly what long-term investors and occupiers need for confident, multi-year commitments. For corporates, this clarity does not just shape tax planning, it shapes their workplace strategy. When high-value work is concentrated in India, boards and leadership teams can justify deeper investment in campuses, experience-led offices and collaboration spaces that support complex, tech-intensive roles. A more predictable regime encourages companies to design workplaces that are magnets for global talent: agile, amenity-rich, and aligned with ESG expectations and global compliance standards. As a workplace design and build firm, we see this Budget as a clear green light to plan for the next wave of high-performance workplaces. When global and Indian companies have greater clarity and confidence on their India growth plans, they are more willing to invest in agile, experience-led, sustainable offices that can attract talent and support complex, technology-intensive work. We may not yet have infrastructure status for the Interior Design and Fit-out industry and that remains a worthy aspiration but the direction of reform is very encouraging. This Budget strengthens India’s position as the preferred destination for global work, and that is fundamentally positive for our sector, our clients and the thousands of professionals who shape the workplaces where this growth will actually be delivered.”

Nilesh Aggarwal, Founder of Medtalks, noted the life sciences push: “The Union Budget 2026–27 signals a clear intent to strengthen India’s clinical research and life sciences ecosystem. The focus on clinical trials, regulatory capacity, and biologics reflects a shift towards making India as a globally credible research destination, not just a cost-efficient one. As this ecosystem evolves, evidence generation cannot remain limited to trials alone. Indian medical journals, continuous medical education, and real-world data will be equally important in translating research into everyday clinical practice especially in a country as diverse as India. There is also a need to strengthen India’s own platforms for scientific publishing, doctor education, and patient awareness so that India-specific evidence is generated, interpreted, and disseminated locally. At the IJCP Group, we have been working across these areas for several years, spanning research, medical publishing, education, and patient engagement, and see this Budget as an important step towards building a more integrated, evidence-driven healthcare ecosystem.”

Arjun Anjaria, Founder & CEO of Unbox Health, emphasized food safety and nutrition: “The Budget reinforces the growing recognition that food safety and nutrition are central to long-term public health and economic productivity. As packaged foods and supplements become a larger part of everyday diets, consumers need clearer, more reliable information to make safe choices. Stronger labelling standards, wider access to accredited testing and consistent enforcement can help ensure that label claims reflect product reality. Platforms like Unbox Health complement this effort by independently testing products and publishing lab-backed ratings, helping consumers navigate complexity while encouraging brands to meet higher standards of transparency and compliance.”

Parth Amin, CEO & Co-Founder of Decode Age, hailed the longevity focus: “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.”

Overall, the Budget 2026-27 positions India for resilient, innovation-driven growth by integrating cultural heritage, services excellence, and advanced healthcare. Industry reactions underscore optimism in ecosystem building, though calls for deeper alignment in areas like global trade facilitation and sector-specific infrastructure persist.

Last Updated on: Tuesday, February 3, 2026 7:30 pm by Monisha Angara | Published by: Monisha Angara on Tuesday, February 3, 2026 7:30 pm | News Categories: Business