Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 today, framing it as a Yuva Shakti-driven blueprint that balances fiscal consolidation (deficit at 4.3% of GDP) with targeted investments in healthcare access, agricultural intelligence, digital infrastructure, MSME resilience, and emerging creative & tech ecosystems. Key announcements include the establishment of new national-level mental healthcare institutions, the launch of Bharat Vistaar (an AI-enabled agricultural advisory platform), a tax holiday until 2047 for foreign cloud data centres, expansion of medical and pharma manufacturing capacity, and continued emphasis on Tier-II/III city connectivity and MSME funds.
Industry leaders across mental health, agritech, construction, gaming/content, fertilisers, securities, home appliances, and digital tech have welcomed the budget as pragmatic, long-term oriented, and aligned with India’s Viksit Bharat vision by 2047.
Mental Healthcare & Pharma: Building Access and Capacity
The budget’s explicit recognition of mental health through new national institutions, alongside doubling down on pharma manufacturing and expansion of medical seats, has been hailed as a foundational step toward comprehensive healthcare.
Mr. Abhineet Kumar, CEO & Founder, Rocket Health (Mental Health Tech), expressed optimism:
“Delighted to see the budget acknowledging the mental healthcare ecosystem in India and announcing new national-level mental healthcare institutions aimed at improving care delivery, training and research. It’s a strong start and will go a long way in developing the mental healthcare infrastructure in our country. I’m glad we are also doubling down in pharma manufacturing and expanding medical seats to address doctor shortages — both much needed steps to improve access for our billion strong population and strengthen India’s position as a global healthcare leader.”
Agriculture & Food Security: Bharat Vistaar as a Game-Changer
The introduction of Bharat Vistaar—an AI-powered federated platform for soil, weather, advisory, and scheme data—alongside support for high-value crops and value addition, signals a tech-infused push for farm resilience.
Mr. Vinay Nair, Founder, KhetiBuddy (Agritech/ Agriculture), noted:
“The launch of Bharat Vistaar is a major step towards developing a common digital framework for the agricultural sector in India. By providing access to soil, weather, advisory, and scheme-related data in a federated manner, it will be possible to make better decisions at the farm level. The actual benefit will be realized when these platforms are integrated with other systems such as Verdnt, which is used by food companies. By integrating farm-level intelligence with procurement, quality, and inventory management systems, it will be possible to eliminate inefficiencies and minimize resource waste. In the long run, this will enable more sustainable agricultural practices and enhance the resilience of the food value chain in India.”
Mr. Nishant Kanodia, Chairman, Matix Fertilisers & Chemicals Ltd., described it as a watershed moment:
“The Union Budget 2026–27 is a watershed moment that validates a conviction I have held for years: the future of food security lies at the intersection of biology and technology. The Finance Minister’s announcement of ‘Bharat Vistaar’—an AI-enabled advisory system—alongside a substantial ₹1.52 lakh crore allocation, bridges the gap between tech and the soil. We often view agriculture as traditional and tech as modern, but this Budget proves they are symbiotic. The focused push on high-value crops like coconut and cocoa will stimulate farm incomes, while the strategic recalibration of customs duties encourages the domestic value addition we have long championed under ‘Make in India’. At Matix, our foundation is built on resilience and efficiency. We see the removal of exemptions not as a hurdle, but as a necessary step toward the self-reliance and predictable environment required for capital-intensive sectors to thrive. We are ready to translate this policy framework into action, ensuring that as India moves toward ‘Viksit Bharat,’ our farmers are equipped with both the best nutrients and the best intelligence.”
Infrastructure & Construction: Tier-2/3 Shift and Execution Challenges
The sustained capex momentum and focus on non-metro growth have been seen as a structural reorientation, though on-ground execution remains the critical test.
Mr. Iesh Dixit, Co-founder and CEO, Powerplay (Construction Tech), observed:
“This Budget makes one thing very clear: infrastructure is no longer a metro-only story. The real action is about to move to Tier 2 and Tier 3 cities, where MSME contractors will be executing more projects, faster, and at far greater scale than before. But here’s the hard truth – money and momentum alone won’t fix execution. As infrastructure spending accelerates, the weakest link will be on-ground coordination, visibility, and cash discipline. Construction businesses will have to professionalise quickly, or they’ll get left behind. For us at Powerplay, this is a stress test for the ecosystem. The next phase of India’s infra boom will reward those who can build with data.”
Creative Economy & Digital Infrastructure: Validating the Next Generation
Initiatives such as Content Creator Labs in schools/colleges and the long-term tax holiday for data centres have been praised for nurturing talent and digital backbone.
Mr. Parth Chadha, Co-Founder & CEO, STAN (Gaming/ Content creators), said:
“Seeing Creator Labs come into schools and colleges is a powerful signal that the country is preparing the next generation for careers in the creative and digital world. What started as a grassroots movement is now part of India’s broader vision for the ‘orange economy.’ At STAN, we’ve believed early in the potential of creators and communities, so this feels like a real moment of validation and a reminder to keep building with even greater responsibility.”
Mr. Rathnakar Samavedam, Investment Director and Managing Partner, Hyderabad Angles Fund, added:
“The Budget meets India’s structural requirements over the long term with a strong emphasis on small industries through dedicated funds such as the Small Industries Fund and the Resilient India Fund. The exemption on income tax for data centers gives a big fillip to digital infrastructure, and cross-border e-commerce opportunities unlock new routes for growth. This is a balanced and growth-oriented Budget for the economy and the startup ecosystem.”
Manufacturing, MSMEs & Broader Competitiveness
Leaders across sectors emphasized the budget’s focus on cluster-led manufacturing, MSME dignity, skill-employment linkage, and global competitiveness.
Tarun Singh, Founder and MD, Highbrow Securities, stressed grassroots impact:
“If India is to become a $10 trillion economy, it will not be built in boardrooms alone but in industrial clusters, where MSMEs translate policy intent into real economic value. The Union Budget 2026 has focused on manufacturing scale, cluster-led growth, and financial stability. Its true impact, however, will depend on how effectively these measures reach the grassroots. India’s MSMEs are no longer peripheral players; they are engines of innovation. Reform, therefore, must go beyond ease of doing business to ensure dignity of enterprise through faster access to credit, simpler compliance, and consistent institutional support. As ‘City Economic Regions’ take shape, these regions must evolve like startups; lean, agile, and globally networked. This Budget serves as a reminder that while macroeconomic stability builds investor confidence, micro-level resilience builds national confidence.”
Saif Khan, Managing Director & Chief Executive Officer, BSH Home Appliances, welcomed the holistic push:
“The Union Budget 2026 is a forward-looking roadmap that balances fiscal discipline with a clear focus on growth, employment generation, and economic transformation. By boosting industrial efficiency, accelerating adoption of advanced technologies, and robust infrastructure development, the reforms strengthen India’s competitiveness as a manufacturing hub and reinforce the ‘Make in India’ agenda. The strategic focus on MSMEs and Tier II and Tier III cities, coupled with enhanced regional connectivity, will not only broaden consumer access but also accelerate premiumisation drive in emerging markets. Investments in dedicated freight corridors and inland waterways will further strengthen supply chains, improving the reach and availability of high-quality products across the country. We welcome Government’s emphasis on linking education, skills, and employment through market-aligned programmes, addressing skill gaps and preparing the workforce for the future. The proposed tax holiday until 2047 for foreign cloud service providers operating from Indian data centres is a landmark move, reinforcing India’s positioning as a global hub for technology, innovation, and GCC operations.”
Mr. Rajasekhar Papolu, Chairman & Managing Director, Brihaspathi Technologies Limited, concluded:
“The Union Budget signals that India’s digital growth is entering a more mature phase, driven by AI, deep-tech innovation, and robust digital infrastructure. The focus on technology-led development, indigenous manufacturing, and skill creation will accelerate adoption of advanced solutions across smart cities, healthcare, manufacturing, and public safety. Strengthening domestic electronics and semiconductor ecosystems, alongside investments in future-ready skills, is particularly encouraging. Overall, the Budget supports self-reliance while fostering innovation, resilience, and long-term digital transformation.”
The Union Budget 2026-27 presents a cohesive strategy: addressing human capital gaps in health and skills, infusing technology into agriculture, empowering MSMEs and creators, and building digital & physical infrastructure for inclusive, resilient growth. With execution now the defining challenge, stakeholders see this as a measured yet ambitious step toward a $10-trillion economy rooted in innovation, equity, and sustainability.
Last Updated on: Wednesday, February 4, 2026 11:50 pm by Economic Edge Team | Published by: Economic Edge Team on Wednesday, February 4, 2026 11:50 pm | News Categories: India, News
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