Union Budget 2026: Pre-Budget Expectations for the Technology Sector in India

Technology clients expect Union Budget 2026 to reinforce India’s position as a global hub for AI-led services, product engineering, digital exports, and technology manufacturing. The shift underway is from digitisation alone to productivity, competitiveness, and value creation.

As global enterprises scale AI adoption and restructure supply chains, the budget must send a clear execution-oriented signal that India is ready to support this next phase of growth.

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AI Enablement: Compute, Cloud, and Core Infrastructure

AI adoption at scale depends on access to foundational enablers.

Key expectations from Budget 2026 include:

• Improved access to compute infrastructure, including GPUs and AI accelerators.
• Support for AI-as-a-service marketplaces and shared AI infrastructure.
• Accelerated development of data centres, including availability of power, energy efficiency, water, and utility infrastructure.

AI growth in India is currently constrained by data centre capacity and utility bottlenecks. Budgetary support that eases these constraints will allow enterprises to scale AI deployments more rapidly.

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GCCs as Strategic Technology Engines, Not Back Offices

For organisations with large Global Capability Centres (GCCs), policy direction matters as much as cost economics.

Technology clients expect:

• Clear policy signalling that India is the destination for high-end engineering, R&D, and AI work, not just cost arbitrage.
• Reduction in compliance friction caused by state-level variations in policies and regulations.
• Measures to improve access to specialised talent, particularly in areas such as AI engineering, product ownership, and advanced research.