Budget measures focus on AI, digital infrastructure, entrepreneurship, and skill-building for inclusive growth.
The Union Budget 2026-27 has laid out measures to strengthen India’s startup ecosystem, promote MSME growth, encourage AI and emerging technology adoption, and support Tier-2 and Tier-3 city enterprises. Industry leaders welcomed the Budget’s focus on long-term structural reforms, capital expenditure, and inclusive growth, highlighting its potential to reshape innovation, digital infrastructure, and regional development.
“The government’s commitment to scaling startups and supporting first-time entrepreneurs, particularly in Tier-2 and Tier-3 cities, signals a shift from metro-centric innovation to grassroots development. Programs such as the GENESIS initiative, Fund of Funds, and Seed Fund schemes provide young enterprises with access to patient capital, mentorship, and infrastructure,” said Adeeb Jamal, Founder, ARAF.
Commenting on MSME support, Mr. Rohit Mahajan, Founder and Managing Partner, Plutos ONE, said, “The announcement of a ₹10,000 crore MSME Growth Fund and integration of GeM with TReDS to make receivables tradable directly addresses longstanding working capital challenges. This structural reform will enable small businesses to scale sustainably and access capital efficiently.”
Saurabh Rai, Chief Strategy & Growth Officer, NeoGeoInfo Technologies Limited, welcomed the emphasis on AI and emerging technologies, noting, “The Budget’s focus on AI, quantum computing, and digital infrastructure establishes a strong foundation for technology-driven growth. Initiatives like the India AI Mission and Bharat Vistaar will democratize access to AI platforms while enabling enterprises to adopt scalable and secure technology solutions for competitive advantage.”
Highlighting the emphasis on infrastructure in smaller cities, Mr. Anil Agrawal, Founder & CEO, CIMCON Automation, said, “Budget 2026’s focus on developing public infrastructure in Tier-2 and Tier-3 cities presents a strategic opportunity for utilities automation. Expanding city economic regions with integrated urban and energy infrastructure will improve operational efficiency and accelerate adoption of smart technologies.”
Industry experts also noted the Budget’s intent to boost entrepreneurship, innovation, and technology adoption. Mr. Adeeb Jamal, Founder, ARAF, added, “Enhanced credit guarantees, extended tax holidays, and support for women and SC/ST founders will democratize entrepreneurship and provide early-stage ventures with the cash-flow visibility necessary for growth.”
Overall, the Budget’s measures aim to position India as a global hub for innovation, sustainable industrial growth, and digital transformation while promoting inclusive economic opportunities across regions.s and create sustainable opportunities in the digital and innovation-driven economy.