Budget 2026 Signals Shift to Strategic Tech Capability; AI, Semiconductors, Cloud Get Major Push
The Union Budget 2026 has laid out a clear strategy to transform India from a technology adopter into a builder of core digital capabilities, with focused investments in artificial intelligence (AI), semiconductors, cloud and data infrastructure.
The government’s approach centres on strengthening foundational ecosystems to drive long-term competitiveness, while linking innovation with skilling and inclusion.
Industry leaders say the measures reflect a shift toward structured, large-scale capacity building rather than piecemeal digital expansion.
CP Gurnani, Co-Founder and Vice Chairman, AIONOS, said the Budget marks a “decisive shift” in India’s technology strategy.
“The emphasis on AI, semiconductors, cloud and data infrastructure shows that digital leadership must be built bottom-up on strong foundations,” he said.
A key highlight is the strengthening of the India AI Mission to accelerate research, deployment and ethical governance of AI across sectors. The move is expected to provide a coordinated framework for scaling AI adoption responsibly.
The Budget also links AI investments with workforce readiness and MSME enablement, signalling that growth in the digital economy must be broad-based.
“This is not a narrow tech agenda. By aligning AI with skilling, workforce readiness and MSMEs, the government recognises that scale and inclusion must go together,” Gurnani said.
With services accounting for a large share of India’s GDP and employment, the government has also introduced measures to prepare businesses for AI-led disruptions and incentivise digital and hardware infrastructure.
“Anticipating AI’s impact on services is more responsible than reacting to disruption. These incentives position India as a credible global investment destination,” he added.
Beyond enterprise adoption, the Budget focuses on social impact through initiatives such as Bharat Vistar, which provides farmers with local-language, data-driven crop advisory, and a proposed Centre of Excellence in AI for Education to improve learning outcomes.
Analysts say the combined push aims to position India as a trusted global hub for AI-led innovation, backed by talent, infrastructure and scalable solutions.
“India is moving from being a large consumer of technology to becoming a global platform for AI-driven innovation,” Gurnani said.
