New Delhi: Technology companies are looking to the Union Budget 2026–27, set to be presented by Finance Minister Nirmala Sitharaman on Sunday, to deliver a strong push for Artificial Intelligence (AI), digital infrastructure, and sector-specific innovation. Industry leaders expect the Budget to provide not only policy clarity but also market liquidity to accelerate AI adoption across industries.
The Economic Survey 2026, tabled in Parliament on January 29, positioned AI as an economic strategy rather than a prestige technology race, advocating for a bottom-up, sector-specific approach rooted in open, interoperable systems. The Survey emphasized collaboration and shared innovation, setting the stage for India’s AI ecosystem to grow organically while addressing local challenges.
CP Gurnani, former CEO of Tech Mahindra and Vice Chairman of AI firm AIONOS, welcomed the Survey’s vision, highlighting India’s engineering talent, diverse data assets, and focus on smaller, domain-specific AI models. “Leveraging our strengths to create affordable, human-centric AI that addresses local needs first, then scales globally, positions India as a leader in meaningful innovation,” Gurnani said.
In the logistics sector, software-as-a-service firm FarEye said it expects the Budget to enhance reliability, global competitiveness, and autonomous logistics orchestration, which impacts the movement of goods across the nation. Suryansh Jalan, FarEye’s Chief Business Officer, stressed that incentives for applied AI, advanced planning systems, and interoperable digital workflows will be key to unlocking efficiency and productivity in multimodal logistics networks. With the sector projected to generate nearly 10 million jobs by 2027, Jalan highlighted the importance of targeted skilling for roles such as digital operations and AI-assisted planning.
GlobalLogic, part of the Hitachi Group, views the Budget as an opportunity to transition from a digital-first to an intelligence-first infrastructure, scaling AI and data platforms into physical systems. Piyush Jha, Vice President for Asia Pacific, said India’s progress in AI, data platforms, and digital public infrastructure lays a strong foundation for this next phase.
Lumina Datamatics also expects the Union Budget to strengthen AI-led digital infrastructure supporting knowledge services, publishing, and the growing retail and e-commerce ecosystem. Sameer Kanodia, Managing Director, emphasized that continued investment in AI, automation, and cloud platforms will be critical to increasing productivity across content creation, digital publishing, and large-scale retail operations.
Semiconductor companies, a key pillar for AI infrastructure, have urged that the Budget provide continuity, execution certainty, and long-term competitiveness. Ashok Chandak, President of the India Electronics and Semiconductor Association (IESA), noted that programs like the India Semiconductor Mission (ISM), Production Linked Incentive (PLI), and Electronics Component Manufacturing Scheme have already delivered tangible progress. He called for higher budget allocations, simplified disbursement mechanisms, and tax and execution predictability to sustain momentum in this capital-intensive sector.
Finally, telecom equipment maker HFCL highlighted the opportunity for the Budget to convert India’s telecom infrastructure advantage into enduring technological leadership. Managing Director Mahendra Nahata urged the government to introduce a targeted Innovation-Linked Incentive (ILI) program to support R&D and patent generation in 6G, AI, and defense technologies, which he described as the triad of future strategic power.
As Finance Minister Sitharaman prepares to unveil the Union Budget 2026, India’s tech ecosystem is eagerly watching for policy measures, incentives, and infrastructure investments that could propel AI adoption, modernize digital infrastructure, and solidify India’s position as a global technology leader.