As a watershed moment for India’s growth story, Union Budget 2026 will be a leap from simply being digitally adopted to actually creating deep tech and robust industrial capabilities. The Finance Minister Nirmala Sitharaman explained that the budget has a multipronged strategy to promote growth: “Intelligence-First” digital infrastructure; a Decentralised approach for Startups; and Structural Efficiency for Manufacturing.
In addition to placing high priority on operationalising the Anusandhan National Research Fund, the budget expressly states the intent to create domestic Intellectual Property by launching new Capacity Building AI Missions. Further, the budget builds on the current scaling of the GENESIS program, and the announcement of the ₹10,000 Crore SME Growth Fund provides an architectural framework to democratise innovation, thereby creating an ecosystem that supports the next level of unicorn companies in Tier-2 and Tier-3 cities (Bharat).
Founders from the AI, Consumer Tech, and Renewable Manufacturing sectors support these initiatives because they believe the combination of “patient capital” for R&D, paired with infrastructure boosts, will drive the next phase of the Economy.
AI & Deep Tech: Deepening Indigenous Capabilities
The Government is supportive of new technology and is leveraging AI to drive national progress rather than simply treating it as another tool. The intent behind linking funding for building high-tech capacity to the Budget is to create a future-focused ecosystem ready to adapt as technology continues to evolve. Mr. Vipul Prakash, Founder and CEO of FireAI, has commented on the strategic impact of this shift.
“We applaud the Government’s Intelligence-First vision in the Union Budget 2026. The specific allocation for Capacity Building AI Missions and the operationalization of the Anusandhan National Research Fund are landmark steps. They signal a shift from simply adopting technology to deepening our indigenous R&D capabilities.
For the Indian tech ecosystem, the commitment to emerging technologies as a driver of inclusive growth is encouraging. When combined with the ₹10,000 Crore SME Growth Fund, this Budget creates a powerful flywheel. The Research and Development and Innovation Fund will build the tech, and the Capacity Building Missions will ensure our workforce is ready to use it. At FireAI, we are ready to support this vision by helping these newly empowered businesses turn data into their strongest asset.”
Startup Ecosystem: Bridging the Gap Between India and Bharat
Recognising that innovation is no longer confined to metros, the FM announced expanded access to funding to support founders in non-metro regions. Mr. Ravi Mittal, Founder & CEO of QuackQuack and Rebounce, believes this will be a catalyst for grassroots innovation.
“The Budget’s strong push towards decentralising India’s startup ecosystem is both timely and transformative. As a platform witnessing massive growth from non-metro India, we welcome the scaled-up GENESIS programme and the expanded Fund of Funds. This directly addresses the biggest hurdle for founders outside the big metros: Access to Capital.
For a digital-first business, the Ease of Doing Business is just as important as funding. The Budget’s focus on simplifying compliance for digital startups and the continued investment in Digital Public Infrastructure (DPI) will be the real catalyst. It lowers the barrier to entry, allowing entrepreneurs in Tier 2 and Tier 3 cities to focus on building a product rather than paperwork. This essentially bridges the gap between India and Bharat, ensuring that the next wave of tech innovation is inclusive, widespread, and grassroots-led.”
Renewable Energy & Manufacturing: Strengthening the Supply Chain
The Budget also emphasized the importance of energy transition and domestic manufacturing as pillars of a self-reliant economy. With the historic hike in Capital Expenditure and the rationalization of duties on solar inputs, the Government has strengthened the backbone of the renewable sector. Mr. Mayank Garg, CEO of Aroma Solar Energy, highlighted how these structural changes will boost global competitiveness.
“The Union Budget 2026 is a massive boost for domestic solar manufacturers, addressing both structural efficiency and cost competitiveness. The historic increase in Capital Expenditure to ₹12.2 lakh crore provides the robust infrastructure backbone essential for industrial growth.
We are particularly encouraged by the revision of duties on solar cells and solar allied products. This move to rationalise the duty structure is a decisive step to correct inverted duties, significantly lowering our input costs and boosting domestic value addition. When combined with the new Economic and Freight Corridors, which will reduce our logistics costs for moving heavy glass and modules, the Government has effectively removed the two biggest bottlenecks for the industry. This ecosystem paves the way for Make in India solar brands to not just serve the domestic market, but compete globally.”
