Union Budget 2026 Accelerates India’s Tech Sovereignty, Women-Led Growth, Creative Economy, and Export Competitiveness
The Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman on February 1, 2026, emphasizes fiscal stability, structural reforms, and sectoral competitiveness amid global uncertainties. With public capital expenditure sustained at a record ₹12.2 lakh crore (up ~9% from the previous year, at ~3.1% of GDP) and the fiscal deficit targeted at 4.3% of GDP (down from 4.4% RE for FY26), the Budget prioritizes domestic manufacturing, technology adoption, healthcare innovation, and inclusive growth under the Viksit Bharat and Yuva Shakti vision.
Key measures include scaling up strategic sectors like electronics and semiconductors, bolstering traditional medicine and wellness, expanding mental and geriatric care ecosystems, and decentralizing startup support through enhanced funds and simplified compliance.
Advanced Manufacturing and Electronics Ecosystem
The Budget reinforces India’s ambition to become a global hub for sophisticated manufacturing, with continued focus on localization and supply chain resilience.
Dhaval Radia, Chief Financial Officer (India), ZEISS Group, highlighted the need for deeper reforms:
“Union Budget 2026 reinforces stability at a time when global uncertainty remains elevated. The government’s continued focus on capital expenditure, infrastructure & logistics, tech-driven compliance and fiscal discipline provides an important foundation for medium-term growth and investor confidence. That said, India’s next phase of value creation will increasingly depend not just on public spending alone, but on the competitiveness of its operating environment. For advanced manufacturing and healthcare technology companies, challenges today lie in structural frictions such as customs complexity, inverted duty structures, regulatory overlaps, and interpretational tax uncertainty. As India aspires to move up the value chain – from scale to sophistication – future policy frameworks will need to place greater emphasis on predictability, simplification, and governance. This shift will be critical for attracting long-term investments, accelerating innovation, and positioning India as a global hub for precision manufacturing and technology-led growth.”
Arijeet Talapatra, CEO at itel India, welcomed the electronics push:
“The Union Budget 2026 delivers a clear and reassuring message for brands investing in India’s electronics ecosystem, laying a strong framework towards establishing India as a global hub for manufacturing electronics. The increased outlay of the Electronics Component Manufacturing Scheme will help deepen localisation, strengthen the value chains, and improve the cost competitiveness of consumer electronics goods. The announcement of the India Semiconductor Mission 2.0 is a welcome move that will bolster India’s journey towards becoming Atmanirbhar – critical for ensuring uninterrupted access to crucial technologies. The government’s focus on infrastructure development in Tier-2 and Tier-3 cities will further drive consumer-led growth by improving access, distribution efficiency, and last-mile connectivity. For itel, these initiatives resonate deeply with our commitment of democratizing access to durable, reliable, and affordable technology – empowering millions of consumers across Bharat.”
Ayurveda, Wellness, and Beauty Sector Boost
The Budget strengthens AYUSH and natural wellness through institutional upgrades and export promotion, aligning with growing global demand for science-backed traditional medicine.
Swagatika Das, CEO & Co-Founder, Nat Habit, noted:
“The Union Budget 2026 signals a clear intent to position Ayurveda and AYUSH as scalable, science-backed contributors to India’s beauty and wellness economy. The creation of three new All India Institutes of Ayurveda strengthens the research, standardisation, and clinical validation framework that the sector needs to move beyond legacy narratives and build global credibility. This focus on infrastructure and capability building will elevate product standards, deepen consumer trust, and support the evolution of Ayurveda-led formulations for modern markets. Equally significant is the renewed push to expand exports of Ayurveda and AYUSH-based products, reinforcing India’s position as a reliable global supplier in the fast-growing natural beauty and wellness segment. Inclusion-led initiatives such as She MARTS further strengthen the ecosystem by expanding market access for women-led micro-enterprises and enabling decentralised, value-driven growth across the supply chain. Together, these measures lay the foundation for a future-ready Ayurveda beauty sector anchored in science, scale, and global ambition.”
Health and Care Ecosystem Focus
A notable emphasis on holistic health includes training 1.5 lakh caregivers, establishing NIMHANS-2 in north India, upgrading mental health institutes, and building a geriatric and allied care framework—addressing both physical and emerging mental wellness needs.
Coach Sangeeta Sharma, certified life coach, hypnotherapist & author, observed:
“Budget 2026 makes a strong statement about infrastructure, manufacturing strength, technology, and a formal “care ecosystem.” What stands out is the Government’s acknowledgement that India’s growth story must be people-centric, not just production-centric. The intent to build a Care Ecosystem, train 1.5 lakh caregivers, set up NIMHANS-2, and upgrade National Mental Health Institutes is a meaningful step forward. However, while the budget speaks about health, the framework still leans heavily toward physical, medical, and institutional care. Health in its true sense is not only physical. It is mental, emotional, and psychosomatic. Research consistently shows that nearly 95% of diseases have psychosomatic roots — anxiety manifesting as digestive disorders, suppressed emotions weakening immunity, chronic stress contributing to heart disease. If we treat only the body without addressing emotional and mental strain, we are treating symptoms, not causes. This is where Budget 2026 opens an opportunity, but stops short of completing the picture. Creation of a Mental Wellness Innovation Fund to support startups building apps, AI tools, and community platforms for emotional health, aligning with the budget’s push toward AI and technology. GST reduction or waiver on counseling, hypnotherapy, meditation programs, and wellness workshops, making these services affordable for middle-class and rural populations.”
Startup Decentralization and Inclusivity
The Budget advances grassroots innovation by scaling programs like GENESIS and expanding the Fund of Funds, easing capital access and compliance for non-metro founders.
Mr. Ravi Mittal, Founder & CEO of QuackQuack & Rebounce, stated:
“Budget’s strong push towards decentralising India’s startup ecosystem is both timely and transformative. As a platform witnessing massive growth from non-metro India, we welcome the scaled-up GENESIS programme and the expanded Fund of Funds. This directly addresses the biggest hurdle for founders outside the big metros: Access to Capital. For a digital-first business, the Ease of Doing Business is just as important as funding. The Budget’s focus on simplifying compliance for digital startups and the continued investment in Digital Public Infrastructure (DPI) will be the real catalyst. It lowers the barrier to entry, allowing entrepreneurs in Tier 2 and Tier 3 cities to focus on building a product rather than paperwork. This essentially bridges the gap between India and Bharat, ensuring that the next wave of tech innovation is inclusive, widespread, and grassroots-led.”
The Budget 2026-27 balances continuity in infrastructure and fiscal discipline with targeted reforms in manufacturing, wellness, healthcare, and startups. Industry voices praise its stability and forward-looking elements while calling for further simplification and holistic integration to unlock India’s full potential in high-value sectors.
Last Updated on: Wednesday, February 4, 2026 10:51 pm by Business Max Team | Published by: Business Max Team on Wednesday, February 4, 2026 10:51 pm | News Categories: Economic
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