The Union Budget 2026 marks a decisive evolution in India’s entrepreneurial strategy, signalling a transition from startup enablement to startup scaling. With focused interventions across manufacturing, artificial intelligence, services, and MSMEs, the Budget positions startups and small businesses as central drivers of economic growth, job creation, and global competitiveness.
Startup Ecosystem: From Enablement to Scale
Founders and ecosystem leaders see Budget 2026 as a clear recognition of startups as long-term economic engines rather than early-stage experiments.
Lokendra Ranawat, Co-Founder & CEO, WoodenStreet, said:
“Budget 2026 shows a remarkable change, from startup enablement to startup scaling. There is a clear indication from the government to recognize and treat as economic drivers startups focused on MSME champions, manufacturing-led growth, and ecosystem-driven industrial policy.”
He added that access to scale-enablers is now a priority:
“The SME Growth Fund and other such initiatives, manufacturing-linked infrastructure will support founders in improving traction to a sustainable scale. The budget focuses on removing the short term disincentives while fortifying access to the constituents required by the startups to build scale – capital, infrastructure, and policy stability.”
Building Globally Integrated Startups
Industry leaders also highlighted the Budget’s outward-looking approach, aimed at integrating Indian startups into global supply chains.
Ridhima Kansal, Director, Rosemoore, said:
“The budget 2026 focuses on India’s startups integrating and contributing to the world’s supply chain and not being the internally oriented.”
She noted that deep-tech and manufacturing will benefit from ecosystem-level investments:
“The focus on the key building blocks of the world: semiconductors, electronics, critical minerals, and urban industrial clusters aims to support deep-tech and manufacturing focused startups to build marketable intellectual property.”
While acknowledging limited direct tax relief, Kansal emphasized the long-term intent:
“Although the direct tax relief for startups is a bit too modest, the various initiatives of a supportive ecosystem aim to foster long term continuous innovation, localization, and resilience.”
AI, Technology, and Services Drive Future Growth
Technology adoption and skills development remain central to the Budget’s long-term vision, with AI and quantum computing positioned as strategic growth pillars.
Hiren Joshi, Founder & CEO, Bee Online, said:
“FM Sitharaman’s technology adoption initiatives which include the AI Mission and the Quantum Mission and Research Funds establish India as a leader in technological innovation.”
He highlighted the role of policy-led skilling:
“The Education to Employment Standing Committee functions as a visionary organization which assesses AI’s employment effects to bridge essential skills deficiencies.”
The services sector continues to be viewed as a powerful poverty-reduction and employment engine.
Sarthak Sharma, Founder, ModxComputers and Tech Content Creator, said:
“The budget proves our argument because it confirms that the Services Sector serves as India’s growth multiplier.”
He added that the 2047 vision is ambitious but transformative:
“The 2047 goal of reaching 10% global market share for India is a difficult target to achieve but it will turn India into an innovation center while providing respectful work for its young population.”
MSMEs: Strengthening the Economic Foundation
The MSME sector welcomed targeted funding and cluster-based development as critical to decentralised growth.
Abbhinav R Jain, Co-Founder & Chief Financial Officer, AdCounty Media, said:
“The MSME fund of ₹10,000 crore which FM Sitharaman established and the 2000 industrial cluster revival initiative mark a transition from corporate governance to support for local business development.”
He emphasized the broader economic impact:
“This policy framework treats MSMEs as the fundamental economic engine of India which generates job opportunities in tier-2 and tier-3 urban areas.”
The cluster modernisation approach, he noted, combines tradition with technology:
“The cluster modernization program helps artisans to use their traditional knowledge together with advanced technological developments.”
Outlook
Union Budget 2026 presents a coherent roadmap for India’s entrepreneurial and industrial future anchored in scalable startups, AI-driven services, and MSME-led local development. While stakeholders acknowledge that execution will be critical, the Budget is widely seen as a strong signal of policy stability, global ambition, and long-term economic confidence.
As India moves toward its Viksit Bharat 2047 vision, the Budget’s emphasis on scale, integration, and technology could define the next phase of sustainable growth.
Last Updated on: Tuesday, February 3, 2026 9:30 pm by Business Byte Team | Published by: Business Byte Team on Tuesday, February 3, 2026 9:30 pm | News Categories: Business
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