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. 

As India’s IT MSMEs and SMBs gear up for the upcoming Budget, industry leaders are urging the government to focus on practical, outcome-driven reforms. There is a strong call for greater support toward affordable digital infrastructure, wider cloud adoption, stronger cybersecurity frameworks, and sustained investment in skill development. Budgets that address real operational challenges, such as easier access to credit, faster GST refunds, and simplified compliance, can directly enable MSMEs to scale, innovate, and compete globally. Targeted measures in these areas would not only empower small and mid-sized IT enterprises but also strengthen India’s public technology ecosystem and accelerate the country’s digital economy. -- Rahul Sharma, Director, Praruh Technologies

We have successfully moved from ‘Imported in India’ to ‘Assembled in India’; the 2026 Budget must now build the bridge to ‘Engineered in India.’ For brands like Just Corseca investing heavily in local infrastructure, the focus must shift from basic assembly incentives to deep-tier manufacturing.

We need a fiscal runway that rationalises duties on high-tech capital machinery and incentivises domestic R&D for core components like PCBAs and batteries. The government has given us the volume; now we need the policy support to own the value. This budget should be about empowering Indian brands to own the intellectual property, not just the factory floor. -- Ritesh Goenka, Managing Director, Damson Technologies 

IT MSMEs and SMBs are the innovation backbone of India’s digital economy, but they require focused policy support to survive and thrive amid rapid AI-driven disruption.

Indian Union Budget of 2026 states:

• Lowers AI adoption friction
• Rewards IP creation,
• Improves access to tech-aligned credit,
• Enables responsible innovation,

Will ensure that India’s next phase of IT leadership is broad-based, inclusive, and globally competitive.

-- Satyendra Pasalapudi, Founder & CEO, Chat4ED Enterprise Solutions

If our Govt is Serious on Make in India/Swadeshi then Handholding in the Form of Buying preference as well as Protection from Predatory Marketing Tactics as being Practised Currently by China need to be Countered by Highest Custom Duty Tarriffs & deciding the Min Import Price in Consultation with the Trade Associations needs to be done other than Govt adoption of all Final Findings of the DGTR viz Anti Dumping Duty Imposition. Govt needs to walk the Talk.

-- Puneet Singhal, President, CMDA

“As India looks ahead to Union Budget 2026–27, the sustained focus on digital capability building and talent development provides a strong base for a future-ready workforce. Continued investments in skills across AI, data, cloud, and digital engineering are strengthening India’s ability to support complex enterprise transformation programs at a global scale.

Across the technology services sector, companies are focused on building delivery-ready talent through enterprise-led training, apprenticeships, and structured early-career programs. Budget provisions that help scale these efforts and enable closer collaboration with educational institutions can sustain this momentum and reinforce India’s position as a global hub for digital services delivery.”  

-- Venkatesan Vijayaraghavan, Chief Operating Officer, Virtusa

“Now more than ever, with global supply shifts, it’s imperative that the budget focuses on strengthening climate finance and  MSMEs.  The Budget makes it clear that resilience must now be affordable, measurable, and scalable. Technology will be the bridge, helping MSMEs access capital by translating sustainability performance into financial credibility. This is how India can build growth that is both resilient and investable.”