India's Union Budget 2026 decoded: Expectations vs outcomes for tech sector

India's tech wishlist just met its match. From chip dreams to MSME muscle, Budget 2026 swaps talk for traction. But is execution finally catching up with ambition-or just gearing up for the long game to 2047?

- BHARTI TREHAN

For India's technology and manufacturing ecosystem, the Union Budget 2025 was about expectation-setting. Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman, is about execution.

A year ago, industry leaders spoke about what India needed to prepare for: cybersecurity resilience, AI readiness, semiconductor ambition, MSME support and manufacturing scale. This year, the Budget has responded with clearer policy intent, larger financial commitments and a sharper focus on moving Indian industry up the value chain.

From a Rs 40,000 crore push for Semiconductor Mission 2.0 to a Rs 10,000 crore MSME Growth Fund, Budget 2026 reflects how last year's expectations have evolved into structured delivery.

What the technology industry expected from the Union Budget Cybersecurity, data and AI readiness

In the run-up to Budget 2025, the technology sector's expectations were anchored in future preparedness.

Sunil Sapra, Co-Founder & CGO, Eventus Security highlighted the urgent need to strengthen India's cybersecurity framework through higher infrastructure investments, public-private collaboration and skill development.

The emphasis was on building resilience before threats escalated further.

At the same time, Puneet Gupta, VP and MD, NetApp India/SAARC spoke about intelligent data infrastructure as the backbone of AI adoption.

Cloud incentives, data localisation and scalable platforms were seen as essential for India's digital economy to mature.

The common thread across these expectations was clear: the industry was asking the government to lay the foundations.

Manufacturing and electronics: scaling domestic capability

Manufacturing voices in 2025 were focused on capacity expansion and incentives.