Union Budget 2026–27: IT industry expectations on infrastructure, AI and digital growth

As the countdown to the Union Budget 2026–27 begins, India’s technology ecosystem is watching closely. For the IT services industry, global capability centres and the wider digital economy, this Budget is less about headline-grabbing announcements and more about getting the basics right. Infrastructure, policy clarity and talent readiness. These are the levers that decide whether India continues to deliver with confidence at scale or merely reacts to global demand shifts.

Industry leaders believe this Budget arrives at a moment when India’s IT and engineering story is evolving fast. From secure digital infrastructure that underpins long-term client programmes to clearer direction on AI adoption, geospatial intelligence, electronics manufacturing and data-led platforms, expectations are firmly rooted in execution, not ambition. The message from the sector is consistent. Strengthen the foundations, reduce friction and back innovation with predictable policy support. Done right, Budget 2026–27 can reinforce India’s position as a dependable, innovation-driven technology partner for the world.

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As India’s IT services industry and GCC ecosystem continue to scale, the upcoming Union Budget presents an opportunity to reinforce the fundamentals that enable consistent, high-quality delivery. Continued investment in secure, reliable digital and physical infrastructure will further strengthen India’s position as a preferred destination for global capability centres and long-term client programs. In parallel, clear policy direction on AI adoption and workforce readiness will be critical to building a world-class, innovation-driven engineering talent base that can deliver sustained value with confidence and predictability. -- said Girish Hirde, Global Delivery Head at InfoVision

We at Matrix Geo Solutions expect the Union Budget 2026–27 to accelerate India’s infrastructure and digital transformation by strengthening policy support for geospatial technologies, drone-based surveying, and data-driven planning. Priority should be given to wider adoption of LiDAR, GIS, photogrammetry, and AI-enabled geospatial analytics across national infrastructure, water resources, disaster management, and urban development programs. Enhanced allocations for geospatial data infrastructure, streamlined drone regulations, and incentives for indigenous technology development will improve project accuracy, speed, and cost efficiency. The Budget should also encourage integration of geospatial intelligence with BIM, digital twins, and smart infrastructure platforms. Such measures will enable better decision-making, faster execution of large-scale projects, and position India as a global leader in geospatial engineering, modern surveying, and technology-driven infrastructure development -- said Rahul Jain, MD at Matrix Geo Solutions.