The Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman, reinforces India’s push toward self-reliance (Aatmanirbhar Bharat) and Viksit Bharat through sustained infrastructure investment, strategic manufacturing in frontier sectors, and targeted support for emerging technologies like AI. Public capital expenditure remains at a record ₹12.2 lakh crore (around 3.1% of GDP, up approximately 9% from the previous year), while the fiscal deficit is targeted at 4.3% of GDP (down from 4.4% revised estimate for FY26), maintaining fiscal prudence amid global challenges.
The Budget emphasizes building domestic ecosystems in critical minerals, semiconductors, defense, AI, and industrial-logistics infrastructure, with measures like India Semiconductor Mission 2.0, expanded Electronics Components Manufacturing Scheme (outlay increased to ₹40,000 crore), rare earth corridors in coastal states (Odisha, Kerala, Andhra Pradesh, Tamil Nadu), and new dedicated freight corridors.
Critical Minerals and Advanced Materials Ecosystem
The government adopts a holistic approach to reduce import dependence in strategic materials essential for EVs, renewables, and high-tech industries.
Rajat Verma, Founder & CEO, LOHUM, welcomed the ecosystem focus:
“It’s encouraging to see that the government is taking an ecosystem approach in building the domestic critical mineral and advanced materials ecosystem. By increasing funding for component manufacturing, developing rare earth corridors, and reducing customs duties on equipment for these sectors, the government has given a clear indication that things can’t be done piecemeal, and that upstream, midstream, and downstream are all equally important.”
AI and Emerging Technologies as Growth Enablers
The Budget positions AI and emerging technologies as foundational for governance, productivity, and scalable enterprise adoption, with emphasis on responsible, production-ready solutions and strong data foundations.
Mr. Alok Anibha, Founder, Girikon.AI, noted:
“In the Union Budget 2026–27, the Government of India has highlighted AI and emerging technologies as key enablers of governance, productivity, and economic growth. This signals a clear shift toward scalable, enterprise-grade AI adoption, where real value will be driven by solutions that are production-ready, responsible, and aligned with business outcomes.”
Pritesh Tiwari, Founder Chief Data Scientist, Data Science Wizards, added:
“The Union Budget 2026–27’s focus on AI and emerging technologies reflects a growing recognition that data and intelligence are becoming core economic infrastructure. The real opportunity now lies in building strong data foundations and AI operating systems that can turn insights into consistent, real-world decisions at scale.”
Sandeep Khuperkar, Founder and CEO, Data Science Wizards, stated:
“In the Union Budget 2026–27, the Government of India has emphasised AI and emerging technologies as foundational to governance, productivity, and economic growth. This signals a deeper shift from simply building AI to effectively running it at scale with proper oversight. As AI becomes embedded across public and enterprise systems, organisations will increasingly need AI operating systems that build governance into everyday operations, helping manage data, models, and decisions in real time and enabling a move from isolated AI use cases to scalable, transparent, system-level intelligence.”
Defense Modernization and Indigenous Capabilities
Defense sees continued prioritization, with capital outlay rising to ₹2.19 lakh crore (up nearly 22%), supporting modernization, indigenous UAVs, electronic warfare, and semiconductor-linked supply chains.
Ankit Mehta, CEO, ideaForge Technology Pvt. Ltd., congratulated the measures:
“We congratulate the Finance Minister for presenting a pragmatic Budget that continues to prioritise Defence capital outlay while strengthening India’s domestic manufacturing ecosystem, electronics base, and semiconductor capabilities. Proposed measures such as the India Semiconductor Mission 2.0, the expanded Electronics Components Manufacturing Scheme, and support for advanced technology R&D signal a strong focus on building strategic supply chains and indigenous high-tech capability. With Defence capital expenditure in FY27 rising to ₹2.19 Lakh Crore, almost 22% higher than last year, the government has signalled a strong commitment to modernisation and long-term capability building. This provides clear guidance for frontier technologies and positions ideaForge to continue leading in indigenous UAVs, electronic warfare systems, and advanced aerial platforms, while contributing to India’s vision of a Viksit Bharat and a forward-moving Bharat.”
Industrial and Logistics Infrastructure Momentum
Enhanced connectivity, industrial corridors, and state-led spending boost demand for Grade-A warehouses and logistics parks, particularly in Tier-2/3 markets.
Urvish Rambhia, CEO, Horizon Industrial Parks, observed:
“At Horizon Industrial Parks, as India’s largest and fastest growing industrial and logistics infrastructure developer; we see improved connectivity, expanding industrial corridors and higher state-led infrastructure spending will naturally accelerate demand for Grade-A, large-format warehouses and integrated logistics parks across key corridors and emerging tier-2 and tier-3 markets. Union Budget 2026-27 continues emphasis on infrastructure as a growth engine, while seeking to enhance domestic manufacturing capabilities and attract international investments to Make in India for the world. Alongside the focus on scaling manufacturing, rejuvenating legacy sectors, clusters and developing city economic regions, this creates sustained momentum for India’s industrial and logistics ecosystem. Overall, the Budget provides long-term visibility and confidence for institutional capital to invest at scale, positioning India as a globally competitive manufacturing and logistics hub.”
Broader Strategic Vision
Dr. Rajeev Singh, Director General, Indian Chamber of Commerce (ICC), described the Budget as balanced and forward-looking:
Dr. Rajeev Singh, Director General, ICC (Indian Chamber of Commerce), on behalf of ICC, congratulated the Honourable Finance Minister for presenting a “very strategic” Budget. He said it lays out both short-term and long-term plans, with the long-term vision focused on building national and industrial capacity for self-reliance (Aatmanirbhar Bharat). In the short term, he highlighted measures aimed at improving access to finance and equity, risk coverage, ease of doing business, simplification of regulations, decriminalisation of laws, and a more user-friendly customs regime. The Budget’s focus on reducing import dependence in key sectors, strengthening skills, agriculture, AI technology and infrastructure, and maintaining fiscal deficit targets, he said, creates a predictable and dependable environment for investors. “I would describe this as a very balanced and strategically thought-out Budget that supports both immediate economic needs and long-term nation building,” Dr. Singh concluded.
The Budget 2026-27 blends fiscal discipline with aggressive investments in strategic sectors, positioning India for resilient, technology-driven growth and reduced global dependencies. Industry leaders see it as a catalyst for deeper self-reliance, innovation, and ecosystem development across critical minerals, AI, defense, and logistics.
Last Updated on: Wednesday, February 4, 2026 10:37 pm by Monisha Angara | Published by: Monisha Angara on Wednesday, February 4, 2026 10:37 pm | News Categories: Business
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