India’s technology and AI sector is closely watching the Union Budget 2026–27, hoping it will accelerate the country’s shift toward an intelligence-driven economy. With Artificial Intelligence now seen as a core economic tool, not a prestige race, tech firms want stronger policy support for innovation, digital infrastructure, and real-world AI adoption. The Economic Survey has already backed a bottom-up, sector-focused AI approach.
The Budget is expected to turn this thinking into funding, incentives, and execution support for India’s growing AI ecosystem.
Union Budget 2026 AI Focus On Innovation & Digital Infrastructure
The tech industry wants the Union Budget 2026 to clearly prioritise AI-led innovation and digital infrastructure. The Economic Survey’s view of AI as an economic strategy has been widely welcomed, especially its focus on open systems and sector-specific use cases.
Industry leaders believe India’s strength lies in building smaller, efficient AI models that solve local problems at scale.
Former Tech Mahindra CEO CP Gurnani said India’s combination of engineering talent, diverse data, and practical innovation mindset puts it in a strong position globally.
Tech firms are now looking for Budget support in areas like AI research funding, cloud and data infrastructure, and easier access to capital for startups and enterprises.
There is also strong demand for policies that encourage applied AI instead of experimental projects. Companies want incentives that help AI move from labs into healthcare, education, governance, retail, and manufacturing.
A steady policy environment and clear long-term vision are seen as critical for building trust and encouraging large-scale AI adoption.
Union Budget 2026 AI Expectations From Semiconductors & Telecom
Beyond software and platforms, hardware and connectivity are equally important for India’s AI ambitions. Semiconductor companies are expecting continuity and stronger execution under existing schemes like the India Semiconductor Mission.
Industry bodies have asked for higher budget allocations, faster fund disbursement, and tax certainty, as chip manufacturing involves high costs and long timelines.
IESA President Ashok Chandak stressed that predictability is as important as incentives for global investors looking at India as a semiconductor hub. Without reliable execution, AI infrastructure growth could slow down.
Telecom companies also see the Budget as a chance to connect AI growth with next-generation networks. HFCL has suggested an Innovation-Linked Incentive model to reward R&D and patents in AI, 6G, and defence technologies. Stronger networks will allow AI systems to scale faster and reach deeper into the economy.
Overall, the tech sector wants the Union Budget 2026 to clearly signal that AI is central to India’s growth story, backed by funding, infrastructure, and long-term policy stability.
