As the countdown to 1 February 2026 begins, this year’s Union Budget feels less like a routine balance-sheet exercise and more like a clear statement of intent.
After navigating a year marked by global uncertainty, geopolitical tensions, and shifting capital flows, India enters this budget cycle with cautious confidence and rising expectations.
The economy has shown resilience, markets are signalling optimism, and growth remains one of the strongest among major economies but sustaining this momentum will require careful choices. This year, stakeholders are looking to the government to double down on capex-led growth, offer measured tax relief to stimulate consumption, and sharpen its focus on sectors such as infrastructure, manufacturing, EVs, defence, MSMEs, and digital innovation.
At the same time, fiscal discipline, job creation, and ease of doing business remain non-negotiables. Budget 2026 is expected to strike this delicate balance between ambition and accountability, setting the tone for India’s next phase of economic expansion.
India’s Economic Survey 2025–26, released ahead of Union Budget 2026, paints a picture of steady macroeconomic resilience amid global uncertainty.
The survey highlights India’s strong growth momentum, with real GDP growth expected in the range of 6.8–7.2 per cent in FY27, supported by robust private consumption, sustained public capital expenditure, and improving investment sentiment.
Fiscal consolidation remains on a credible path, backed by higher direct tax buoyancy, improved compliance, and a continued focus on infrastructure-led growth.
Inflation has remained well anchored, aided by lower food prices and timely policy interventions, while the financial system reflects stability through improved asset quality, effective monetary transmission, and strong credit growth to MSMEs.
The survey also underscores India’s expanding services sector, rising exports of high-value software and professional services, and a growing digital and innovation ecosystem as key engines for long-term growth
Notably, many industry leaders echo similar views, noting that the survey’s emphasis on fiscal discipline, capex-led growth, financial sector stability, and digital-led productivity aligns closely with their own expectations from the upcoming Budget 2026.
Tech Leadership Expectations from Union Budget 2026
Atul Kr Bansal, Vice President – IT, Gateway Distriparks Limited said, “From a CIO perspective, the Union Budget presents a critical opportunity to reinforce technology as a pillar of economic policy and the focus must decisively shift from digital enablement to digital acceleration. Priority must continue to be given to digital infrastructure, including nationwide connectivity, cloud-first government adoption, and scalable data platforms that can support India’s growing digital economy. Clear and predictable policy direction on artificial intelligence and data governance will be essential. Enterprises need well-defined frameworks for responsible AI, data protection, and interoperability to confidently deploy AI at scale. Cybersecurity should be treated as national digital infrastructure, with focused investments in cyber resilience, workforce capability, and structured public–private collaboration to address emerging threats. Skilling policies must align closely with industry demand. Incentives for AI, cloud, and cybersecurity training, delivered through outcome-driven, industry-led programs, will help bridge talent gaps and enhance workforce readiness. Finally, policy measures that encourage enterprise innovation, MSME digitisation, and deep-tech development will be key to improving productivity and competitiveness. A consistent, forward-looking policy approach in the Union Budget can help enterprises plan long-term investments and sustain India’s digital growth momentum.”
Ramki Gaddipati- APAC CEO, Global CTO, and Co-Founder, Zeta said, “India’s Digital Public Infrastructure has emerged as a defining pillar of the country’s economic architecture. At a scale where platforms like UPI handle more than 20 billion transactions each month, DPI is no longer a back-end enabler – it is the foundation of how India transacts, grows and includes. Recognising DPI as mission-critical national infrastructure in Budget 2026 would reflect its central role in driving productivity and long-term national competitiveness. However, this scale is increasingly constrained by legacy systems that still underpin large parts of the banking ecosystem. While dependable, these systems limit agility and can raise operational risk in a real-time financial environment. Time-bound fiscal incentives, such as accelerated depreciation or targeted capex support, can help banks modernize core processing, digital experiences, and fraud and risk platforms in a responsible and phased manner. As this modernization progresses, AI is becoming foundational to financial stability.
“Moving FinTech from pilot projects to large-scale production requires affordable compute and robust R&D investment. Stronger R&D tax incentives and policy support for AI industrialization will ensure India moves beyond simple adoption to global leadership in trusted, high-scale financial systems. Policy must also recognise that fintech innovation is capital-intensive with long gestation periods. Innovation-linked tax benefits, such as deferring taxes on profits reinvested into platform development, would accelerate growth. Furthermore, as India’s DPI model gains traction across the Global South, driven by fintech diplomacy and interest from regulated institutions overseas, targeted export incentives can establish the nation as a premier global provider of digital financial infrastructure. Finally, deepening digital adoption necessitates treating cybersecurity as a core pillar of financial stability. Beyond increased funding, establishing a national cybersecurity command would streamline fragmented guidelines and strengthen threat coordination and improve real-time response, safeguarding trust at population scale,” he added.
Bindeshwar Prasad, CIO, Ishan Institute of Management and Technology, said, “Whole world is changing dramatically in terms of Technology, especially in the field of AI. As we head into the Union Budget, the opportunity is really about using technology to make growth more inclusive and practical, not just innovative on paper. India has already shown what’s possible with digital public infrastructure like UPI and India Stack—now the focus should be on strengthening and expanding these platforms, so they continue to benefit citizens, MSME and enterprises alike. AI and data will play a defining role in the next phase of growth, but adoption must be responsible and outcome driven. Clear guidance on data governance, support for home grown AI innovation, and incentives for real-world use cases can help businesses move from experimentation to impact.”
“At the same time, cybersecurity can’t be an afterthought. As more financial and public services go digital, investing in cyber resilience, skills and awareness becomes essential to maintaining trust. Cloud and digital modernization should be encouraged in ways that are flexible and compliant, especially for regulated sectors like BFSI. Finally, skilling remains the common thread, empowering people with relevant digital skills is what will truly turn budget announcements into lasting progress for enterprises and for India’s digital economy,” he explained.
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