As India accelerates its journey towards becoming a global technology and manufacturing powerhouse, the Union Budget 2026–27 has generated strong momentum across distribution, electronics, education technology, cybersecurity, and advanced computing sectors.
Building on the government’s emphasis on semiconductors, artificial intelligence, digital infrastructure, and MSME empowerment, industry leaders have highlighted the Budget’s role in strengthening domestic capabilities, improving supply-chain resilience, and nurturing future-ready talent.
With major investments under the India Semiconductor Mission 2.0, the expanded Electronics Components Manufacturing Scheme (ECMS), and long-term incentives for cloud and data centres, the Budget reinforces India’s transition from an assembly-driven economy to a high-value, innovation-led manufacturing and services ecosystem. The focus on education-to-employment alignment, AI adoption, cybersecurity resilience, and MSME financing further strengthens the foundation for sustainable and inclusive growth.
Industry Leaders Applaud New Tech Reforms
Aditya Khemka, Founder & Managing Director, CP PLUS, highlighted the strategic importance of indigenous technology. He stated, “The Union Budget 2026 signals a decisive shift in India’s technology and security journey, with a clear focus on building capability at home. The strengthened push under the India Semiconductor Mission 2.0 is not only about self-reliance, but about ensuring that the intelligence, computing power, and hardware powering next-generation AI systems are designed and manufactured in India.”
He further added, “The government’s emphasis on artificial intelligence reflects a move from experimentation to real-world, mission-critical deployment. As AI becomes central to public safety, surveillance, and smart infrastructure, this Budget lays the foundation for scalable, secure, and responsible adoption across the country.”
He emphasized, “For homegrown technology companies, this policy clarity creates long-term confidence to invest locally, innovate for Indian needs, and build globally competitive solutions. It positions India not just as a consumer of advanced technologies, but as a trusted creator of AI-led security and infrastructure solutions aligned with the vision of Make in India.”
Debraj Dam, Chief of VAD Venture, Supertron Electronics Pvt Ltd., highlighted the transformative impact of the Union Budget 2026–27 on India’s digital and infrastructure ecosystem. He stated, "The Union Budget 2026-27 is a landmark 'Infrastructure-First' roadmap that fundamentally shifts India’s role from a global consumer to a global architect of high-tech solutions. For the Value-Added Distribution (VAD) landscape, the doubling of the Electronics Component Manufacturing Scheme (ECMS) to ₹40,000 crore and the launch of ISM 2.0 provide the long-term fiscal predictability required to build a world-class domestic supply chain."
He further added, "What stands out most is the strategic focus on 'Intelligence-First' infrastructure. The government’s decision to offer a tax holiday until 2047 for global cloud providers—contingent on utilizing Indian resellers—is a game-changing technical mandate. It empowers VADs to move beyond product supply and lead the deployment of complex Hybrid Cloud and Edge Computing architectures."
He emphasized, "As we scale our efforts in AI-ready storage, specialized data center solutions, and smart surveillance, this budget provides the necessary tailwinds to turn ‘Viksit Bharat’ into a tangible, high-tech reality. This budget is the catalyst that transforms VAD from a logistics function into a ‘Solution Engineering’ powerhouse, bridging the gap between global innovation and India’s sovereign digital infrastructure.”
Nirmal Kumar Meharia, Director of Finance & Operations, Supertron Electronics, described the Budget as a strategic blueprint for long-term industry growth. He said, "The Union Budget 2026 is a forward-looking blueprint that reinforces India's transition from a technology consumer to a global manufacturing hub. The launch of ISM 2.0 and the expanded ₹40,000 crore outlay for the Electronics Components Manufacturing Scheme are transformative steps. For the IT distribution sector, these reforms mean more resilient supply chains and a significant reduction in import dependencies as we move toward full-stack Indian IP.”
He added, “Furthermore, the tax holiday for Data Center and Cloud service providers until 2047 is a visionary move that will trigger massive capacity building. This ensures a steady, long-term demand for high-end enterprise solutions and digital infrastructure. While the increase in STT is a point of note, the overall emphasis on MSMEs and the 'Make in India' initiative provides the stability and momentum needed for the IT industry to scale new heights.”
Rajesh Goenka, CEO, Rashi Peripherals Limited, emphasized the importance of distribution efficiency. According to him “This Budget reinforces India’s ambition to build a globally competitive, self-reliant ICT ecosystem by strengthening both manufacturing depth and distribution efficiency. The expanded focus on domestic electronics components, semiconductor capabilities, will accelerate local assembly while improving cost competitiveness across key ICT categories. Measures supporting cloud infrastructure, data centres, and a simplified IT services framework bring long-needed clarity for technology providers and distributors alike.”
He emphasized, “Together with continued investments in digital public infrastructure and connectivity, these initiatives create a strong foundation for sustained ICT growth and wider technology adoption across India.”
Rajesh Doshi, Director and Co-Founder, Zebronics, highlighted MSME empowerment and ease of doing business. He stated, “The Union Budget 2026 sends a strong and timely signal towards strengthening India’s electronics manufacturing backbone in line with the Viksit Bharat vision. The emphasis on empowering MSMEs, developing rare-earth and component supply corridors, and reinforcing core manufacturing capabilities will be crucial in building resilient domestic ecosystems.”
He further stated, “Equally important is the government’s intent to simplify taxation and improve ease of doing business, enabling manufacturers to deploy capital more efficiently toward growth and innovation. For Zebronics, this direction aligns seamlessly with our long-term commitment to local manufacturing and our readiness for the next phase of consumer electronics demand in India.”
Rajeev Singh, Managing Director, BenQ India and South Asia, underlined the link between education and employability. He said, “The Union Budget 2026 makes a clear statement on reimagining education as a direct driver of employability and economic growth. The proposed Education-to-Employment Standing Committee acknowledges the urgent need to align learning with industry demand and the accelerating impact of technologies such as artificial intelligence.”
He further added, “Initiatives such as Content Creator Labs in 15,000 schools and the development of university townships near industry corridors mark an important shift towards hands-on, technology-enabled, and industry-connected learning environments. These measures will encourage creativity, collaboration, and real-world skill development across K-12 and higher education.”
“Together with continued support for domestic manufacturing and the semiconductor ecosystem, the Budget creates a strong foundation for modern digital classrooms and future-ready campuses. It enables education and enterprise technology providers to play a meaningful role in building skills, improving learning outcomes, and preparing India’s talent base for global competitiveness. It will be good to see how these initiatives take shape in the coming days, and we will support them to the best of our ability,” he concluded.
Sanjay Lodha, CMD, Netweb Technologies, stressed the importance of services exports and advanced computing. He explained, “The Union Budget 2026–27 rightly places technology and services at the centre of India’s growth strategy, emphasizing that emerging technologies such as artificial intelligence will drive jobs, innovation, and exports in the years ahead. By proposing a high-powered committee to unlock the full potential of the services sector and assess how technologies like AI will impact jobs and skills, the government is laying the groundwork for a future-ready economy. The goal of making India a global leader in services exports by 2047 reflects a long-term vision that aligns strongly with industry aspirations. India’s ambition to move from being a software-led economy to a full-stack technology nation.”
He added, “This Budget reinforces our belief that strong digital and compute infrastructure, alongside accessible AI capabilities, will be critical to India’s competitiveness. As businesses, government institutions, and academia increasingly adopt AI, high-performance computing, AI-ready data centres, and purpose-built technology platforms will become essential enablers for real-world deployment at scale.”
He further noted, “The emphasis on skills and education also highlights the growing need for AI lab infrastructure, where students, researchers, and professionals can gain hands-on experience with advanced compute and AI systems. Building such AI labs and research environments is crucial to translating policy intent into practical capability, and this is an area where domestic technology infrastructure plays a key role.”
“Budget 2026–27’s focus on supporting emerging technologies, expanding digital infrastructure, and generating skilled jobs across sectors such as IT, finance, healthcare, manufacturing, and education will accelerate digital transformation. These initiatives will not only help Indian technology firms innovate faster but also strengthen the broader IT and services ecosystem by creating high-value employment, enhancing global exports, and driving productivity gains across industries,” he concluded.
Warren Harris, CEO & MD, Tata Technologies Ltd., described the Budget as transformational. He said, “The Union Budget 2026 is a masterclass in structural reform, decisively positioning India as the world’s preferred engine for advanced manufacturing, digital engineering, and sustainable innovation. The government’s focus on rare earth permanent magnet corridors will significantly strengthen domestic supply chains critical for EVs, aerospace and advanced electronics sectors, which rely on deep engineering expertise.”
He added, “By launching India Semiconductor Mission (ISM) 2.0 with a fortified INR 40,000 crore outlay for electronics manufacturing, the government has transitioned our ecosystem from assembly-led growth to high-value, full-stack IP and component sovereignty. The strong push on STEM education, AI integration and large-scale youth skilling is equally impactful. Initiatives to embed AI-enabled learning systems and expand research infrastructure reflect a clear commitment to building future-ready talent for Industry 4.0.”
He stated, “At Tata Technologies, we welcome this Budget as a strong enabler of the Viksit Bharat vision, reinforcing India’s ambition to emerge as a global leader in digital engineering and R&D. Enhanced support for electronics manufacturing, including the expansion of component incentives to INR 40,000 crore along with streamlined IT services frameworks and higher safe harbour thresholds of INR 2,000 crore will further strengthen India’s innovation ecosystem. Incentives for aviation manufacturing and MRO will accelerate high-value engineering opportunities across mobility and aerospace. Overall, this Budget creates a robust platform for innovation-driven growth, advanced manufacturing and global technology leadership.”
Dr. Sanjay Katkar, Joint Managing Director, Quick Heal Technologies Limited, welcomed the digital acceleration measures. He said, “We appreciate the Government’s strong thrust on digital acceleration across services, cloud infrastructure and data centre ecosystems, which will significantly expand how enterprises, institutions and citizens engage with digital systems.”
He further noted, “The extension of tax holidays for cloud services, safe harbour frameworks for IT services, and large-scale investments across financial services, logistics, healthcare, education and tourism will lead to deeper adoption of AI-driven and data-led platforms.”
He stated, “With initiatives such as AgriStack integration with AI, digital education ecosystems, medical value tourism hubs and large-scale skilling programmes, cyber resilience becomes foundational to this growth. I am confident that with over three decades of shaping cybersecurity in India, Quick Heal and Seqrite remain committed to protecting country’s digital frontiers and enabling individuals and organisations of all sizes to remain resilient as part of the country’s digital transformation journey.”
Dr. Kailash Katkar, CMD, Quick Heal Technologies Limited, remarked, “We thank the Government of India for a forward-looking Budget that places strong emphasis on cutting-edge technologies including AI, digital public infrastructure and expansion of IT and cloud services as well as entrepreneurship at grassroots. The focus on AI-driven systems in healthcare, agriculture (AgriStack) and education ecosystems significantly expands the digital footprint of citizens, making data protection and consumer cyber resilience increasingly critical.”
He added, “Initiatives such as AVGC labs in schools, National Digital Knowledge Grid for tourism, Medical Value Tourism hubs and large-scale skilling programmes further underline the importance of safeguarding personal data, digital identities, and the need for self-reliant indigenous cyber resilience. With a legacy of over 30 years, Quick Heal and Seqrite’s cutting edge cybersecurity solutions have been at the forefront of protecting individuals, businesses, enterprises and govt organisations against evolving digital threats ensuring that India accelerates towards a digitally empowered society.”
Varun Gupta, Co-Founder, GOBOULT, highlighted the component ecosystem. He stated, “Budget 2026–27 places attention on how electronics are built, not just how much is produced. The expansion of the Electronics Components Manufacturing Scheme to ₹40,000 crore and the rollout of India Semiconductor Mission 2.0 strengthen the component layer of the ecosystem. For the audio industry, components shape performance, power efficiency and product life, and they also influence cost stability. As component manufacturing develops locally, pricing is unlikely to fall immediately, but volatility reduces. Over time, brands gain the ability to hold price points steady while improving quality and durability.”
He added, “Alongside public capital expenditure of ₹12.2 lakh crore, this approach supports long-term manufacturing capacity. If executed consistently, it allows the industry to move beyond assembly volume toward building better products that deliver sustained value and wider access for users across the country.”
He emphasized, "Budget 2026–27 is a clear signal that MSMEs are central to India’s economic growth. By expanding access to capital, strengthening liquidity, and introducing targeted support for small and medium enterprises, the government is enabling entrepreneurs to scale, innovate, and create lasting impact. These measures are not just about business growth but about building communities, generating employment, and fostering industrial resilience. Supporting MSMEs means supporting the backbone of the economy and accelerating the journey towards a Viksit Bharat. For founders and business leaders, this budget reinforces the importance of long-term vision, disciplined execution, and industrial foresight as we work to transform entrepreneurial potential into tangible national progress"
Nakul Kumar, Co-Founder, Cashify, spoke about the circular economy. He said, “While the Union Budget 2026–27 is largely focused on strengthening India’s electronics manufacturing ecosystem, its ripple effects will be equally significant for the recommerce sector. Increased domestic production, better component availability, and improved logistics infrastructure will strengthen the lifecycle of devices, making refurbishment more efficient and scalable. Over time, this will aid in expanding access to high-quality, affordable electronics for consumers and reinforce India’s transition towards a more circular and sustainable digital economy.”
Ravi Agarwal, Co-Founder and Managing Director, Cellecor, welcomed the expanded ECMS. He stated, “The Union Budget 2026 reflects a steady and constructive approach toward strengthening India’s consumer electronics and technology manufacturing ecosystem. The near doubling of the Electronics Components Manufacturing Scheme outlay from ₹22,919 crore to ₹40,000 crore is a meaningful step toward building a stronger domestic component supply chain. Alongside the expansion of the India Semiconductor Mission (ISM) 2.0 into a broader, full-stack programme covering materials, equipment, design, and R&D, this signals strong momentum toward positioning India higher on the global electronics value chain.”
He further remarked, “The parallel focus on employment generation and large-scale skilling in electronics manufacturing and emerging technologies will help create a future-ready workforce across factories, assembly lines, and service ecosystems. Overall, the Budget creates a supportive environment for consumer electronics brands to invest with confidence. We look forward to contributing to this growth journey through innovation, localisation, and product development.
Pankaj Rana, CEO, Hisense India, emphasized long-term stability. According to him, “The Union Budget 2026 outlines a forward-looking technology roadmap that strengthens India’s position as a global electronics and innovation hub. The sustained focus on semiconductor manufacturing, electronics components, and AI-led innovation reflects a strong policy commitment to building a resilient domestic ecosystem. Initiatives like India Semiconductor Mission 2.0 and the enhanced outlay for electronics manufacturing are expected to deepen local value creation and strengthen supply chains. For the consumer electronics industry, this creates a stable, growth-oriented environment that encourages long-term investments, innovation, and localisation.”
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