The Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman on February 1, 2026, reinforces India’s Viksit Bharat vision through Yuva Shakti-driven growth, sustained capital expenditure of ₹12.2 lakh crore (3.1% of GDP), fiscal deficit targeted at 4.3%, and bold sectoral reforms. Key highlights include the launch of India Semiconductor Mission (ISM) 2.0 to focus on equipment, materials, full-stack Indian IP, and supply chains (building on enhanced Electronics Components Manufacturing Scheme outlay), Assistive Technology Marts as retail-style centres for persons with disabilities and seniors to access mobility and ergonomic solutions, customs duty exemptions on 17 critical cancer drugs and additional rare disease medicines, reduction of TCS on remittances for medical treatment abroad to 2%, new dedicated freight corridors (including East-West), high-speed rail corridors, container manufacturing support, public infrastructure in Tier II/III cities, and measures for logistics efficiency, manufacturing localization, and inclusive innovation.
Industry leaders have welcomed these announcements as catalysts for self-reliance, affordability, digital transformation, and global competitiveness. Here are their insightful reactions:
Semiconductor and Utilities Automation: Boosting Domestic Innovation
ISM 2.0 emphasizes producing equipment and materials, designing full-stack Indian IP, and fortifying supply chains, with industry-led research and training to support deep-tech enterprises in utilities automation.
Mr. Anil Agrawal, Founder & CEO of CIMCON Automation, highlighted the impact:
“The India Semiconductor Mission 2.0 represents a meaningful commitment by the Government of India to the growth of the utilities automation sector. With a ₹40,000 crore outlay, this initiative provides vital support to full-stack, deep-tech enterprises like ours as we develop domestic intellectual property and scale Indian innovation globally. The localization of critical semiconductor components will create a powerful snowball effect: improving accessibility, reducing lead times, and lowering costs, unlocking opportunities in price-sensitive domestic markets, accelerating the digital transformation of utilities.”
Tier II/III Cities Infrastructure: Opportunities in Smart Utilities
The budget’s focus on public infrastructure in cities with over 5 lakh population opens doors for digitally transforming mission-critical assets like water automation and smart lighting.
Mr. Anil Agrawal added:
“The Union Budget 2026’s emphasis on developing public infrastructure in cities with over 5 lakh population, the Tier II and Tier III cities, opens up significant growth aspects for the utilities automation sector. This will help the industry to make inroads in reference to digitally transforming mission critical infrastructure with water automation and smart lighting, which will essentially contribute in reducing general expenditure and the country’s carbon footprint.”
Logistics and Express Delivery: Multimodal Integration and E-Commerce Scale
Announcements on new dedicated freight corridors, waterways, high-speed rail connectivity, enhanced container manufacturing, customs duty exemption on aviation components, removal of ₹10 lakh cap on courier exports, and ‘Corporate Mitras’ in Tier II/III towns strengthen multimodal logistics, reduce costs, and empower MSMEs in global trade.
Balfour Manuel, Managing Director at Blue Dart, described it as a decisive roadmap:
“Today’s Budget is a decisive, action-oriented roadmap that accelerates India’s journey towards Viksit Bharat by aligning infrastructure expansion, manufacturing scale-up and trade facilitation with deeper global integration. For the logistics sector, announcements around new dedicated freight corridors, waterways, high-speed rail connectivity and enhanced container manufacturing capacity are particularly significant. These measures will strengthen multimodal integration, reduce transit variability, and structurally lower logistics costs which are critical enablers for exports and stronger participation in global value chains. The exemption of customs duty on aviation components is especially important for the express logistics ecosystem, where aircraft uptime and maintenance efficiency directly impact time-definite delivery performance.
The removal of the ₹10 lakh per consignment value cap on courier exports is a landmark reform for cross-border ecommerce. It unlocks scale for MSMEs and D2C exporters, enabling them to access global markets without artificial shipment constraints. The proposal to develop ‘Corporate Mitras’ in Tier-II and Tier-III towns will further strengthen compliance readiness, helping smaller enterprises formalise and integrate seamlessly into global supply chains. These reforms, coupled with broader simplification proposed under the Customs Act, will significantly ease cross-border e-commerce, lower compliance friction, and empower MSMEs to scale globally. Together, sustained capital expenditure of ₹12.2 lakh crore and targeted support for manufacturing and MSMEs create a future-ready ecosystem for integrated logistics providers driven by stronger infrastructure, seamless trade flows, and technology-enabled efficiencies powering India’s next growth chapter.”
Technology, Gaming, and AVGC: From Adoption to Creation
Sustained investments in emerging technologies like AI, gaming, AVGC sector, digital public infrastructure, and skilling position Indian startups for global relevance rooted in local realities.
Mr Bhanu Pratap Singh Tanwar, CEO and Co-founder, Interact Group, noted:
“The Union Budget 2026 lays a strong foundation for India’s journey towards becoming a global technology and innovation hub, firmly anchored in home-grown ideas, Indian talent, and Atmanirbhar capabilities. The Government’s sustained focus on emerging technologies such as AI, gaming and the broader AVGC sector, alongside continued investments in digital public infrastructure and skilling, is enabling Indian startups to transform aspiration into achievement and move decisively from technology adoption to technology creation.
This momentum is being powered by consistent policy support, resilient digital infrastructure, and a rapidly maturing innovation ecosystem that places Yuva Shakti at the centre of India’s growth story. With a renewed emphasis on consumer technology, digital platforms, and original product creation, Indian startups are uniquely positioned to take Digital Bharat products to the world, building globally relevant solutions while remaining deeply rooted in Indian users and realities.
As India advances steadily on the path of Viksit Bharat, we look forward to working closely with policymakers and industry stakeholders to translate this vision into a more inclusive, connected, and future-ready Digital India.”
Healthcare Affordability: Cancer Drugs and Medical Remittances Relief
Customs duty exemption on 17 critical cancer drugs and reduction of TCS to 2% on remittances for overseas medical treatment ease financial burdens and improve access to care.
Manish Dodeja, Chief Operating Officer, Care Health Insurance, welcomed the steps:
“The Union Budget 2026 takes a meaningful step towards improving healthcare affordability and access. The exemption of customs duty on 17 critical cancer drugs is a welcome move that directly lowers treatment costs and eases the financial burden on patients and their families. It reflects a strong policy focus on patient welfare and access to life-saving therapies.
Equally encouraging is the reduction of Tax Collected at Source (TCS) to 2% on remittances for medical treatment abroad. This provides tangible relief to families seeking specialised care overseas for reimbursement related claims from international insurance covers and helps reduce financial pressure. Together, these measures strengthen the healthcare ecosystem and underscore the importance of financial protection in enabling timely and quality care.”
Consumer Manufacturing and Inclusive Innovation: Assistive Tech and Efficiency Gains
Eased input costs, streamlined digital cargo clearances, and Assistive Technology Marts (retail centres for testing and purchasing mobility/ergonomic solutions) shift toward innovation-driven, inclusive manufacturing.
Ganesh Sonawane, CEO and Co-Founder, Frido, emphasized the forward-looking approach:
“The Union Budget 2026 marks a significant step forward for India’s consumer manufacturing ecosystem. By easing input costs and streamlining digital cargo clearances, the Budget creates a faster, more cost-efficient environment for brands to scale operations and compete on a global stage. These measures not only enhance competitiveness but also reinforce India’s commitment to building a modern, agile manufacturing landscape that can respond to both domestic and international demand.
A particularly encouraging aspect of the Budget is its focus on strengthening the assistive technology sector. The proposed Assistive Technology Marts – retail-style centres where persons with disabilities and seniors can explore, test, and purchase reliable mobility and ergonomic solutions, represent a shift from a traditional welfare approach to an innovation-driven agenda. By ensuring direct access to affordable, tested, and future-ready devices, these initiatives empower citizens and create opportunities for entrepreneurs and manufacturers to develop solutions that address real-world needs.
Together, these measures signal a clear commitment to creating a consumer-centric, inclusive, and technologically advanced manufacturing ecosystem. By combining operational efficiency, targeted innovation, and social impact, the Budget not only addresses present challenges but also positions India for long-term leadership in global consumer manufacturing and inclusive innovation. It lays the foundation for a future where competitiveness, accessibility, and technological progress move hand in hand, driving growth and empowerment for all citizens.”
The Union Budget 2026-27 delivers a reform-oriented, investment-led framework that balances fiscal discipline with ambitious pushes in semiconductors, infrastructure, logistics, healthcare, technology, and inclusive manufacturing. These industry reactions highlight its role as a powerful enabler for self-reliance, affordability, innovation, and equitable growth on India’s journey to a developed nation.
Last Updated on: Tuesday, February 3, 2026 12:26 pm by Business Byte Team | Published by: Business Byte Team on Tuesday, February 3, 2026 12:26 pm | News Categories: Tech, Business, News
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