The Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman on February 1, 2026, advances India’s Viksit Bharat vision with a Yuva Shakti-driven approach, sustained public capital expenditure of ₹12.2 lakh crore (3.1% of GDP), fiscal deficit targeted at 4.3%, and strategic reforms across technology, manufacturing, MSMEs, tourism, education-to-employment linkages, and infrastructure in Tier II/III cities. Key announcements include the launch of India Semiconductor Mission (ISM) 2.0 with enhanced focus on equipment, materials, and IP (building on ₹40,000 crore Electronics Component Manufacturing Scheme momentum), ₹10,000 crore SME Growth Fund for equity support and champion MSMEs, ₹2,000 crore top-up to Self Reliant India Fund for micro-enterprises, ₹25 crore allocation for AI capacity-building missions, upgradation to National Institute of Hospitality for tourism skilling, and investments in city economic regions, high-speed rail corridors, and digital infrastructure.
Industry experts and leaders have lauded these measures as foundational for innovation, capital access, job creation, and global competitiveness. Here are their key reactions:
Education, Skilling, and Creative Empowerment: AVGC Labs and Role Models for Children
The proposal to establish AVGC (Animation, Visual Effects, Gaming, Comics) Content Creator Labs in schools and colleges aims to nurture digital creativity, concentration, collaboration, and mindful screen use, while SHE Marts provide real-world examples of women-led entrepreneurship to inspire children.
Dr. Pallavi Rao Chaturvedi, Parenting Coach & Educationist, Get Set Parent; Executive Vice President, AISECT, described it as a progressive step:
“The proposal for schools to implement Content Creator and AVGC lab programs is a progressive step that reflects how deeply digital content now shapes children’s creative expression. Structured exposure to animation, gaming, and visual storytelling will not only nurture creativity but also build essential skills such as concentration, collaboration, and mindful screen engagement. These are future-ready competencies that will support children throughout their schooling and open pathways to emerging creative careers.
Equally significant is the introduction of Self-Help Entrepreneur (SHE) Marts. By creating community-owned retail outlets run by women entrepreneurs and self-help groups, the Budget places children in an ecosystem where they can see real-world examples of women leading, managing enterprises, and driving change. This provides them with meaningful social and economic role models while reinforcing a strong connection between education, entrepreneurship, and social confidence. Together, these initiatives shape a learning environment that encourages creativity, independence, and aspiration.”
MSMEs, Deep Tech, and Critical Sectors: Strengthening Capital and Capabilities
The ₹10,000 crore SME Growth Fund, ₹2,000 crore Self Reliant India Fund top-up, TReDS reforms, GeM integration, ISM 2.0, Biopharma trial sites (₹10,000 crore), and rare earth focus, alongside education-to-employment and AI job impact assessments, bolster deep tech and self-reliance.
Pratip Majumdar, Partner at Inflexor Ventures, expressed excitement:
“The Union Budget 2026 sends a strong and timely signal for India’s MSME ecosystem. The creation of a ₹10,000 crore SME Growth Fund, along with a ₹2,000 crore top-up to the Self Reliant India Fund for micro-enterprise risk capital, will meaningfully strengthen access to capital. The expanded risk capital support for micro and small enterprises, coupled with reforms around TReDS, credit guarantees, and GeM integration, will significantly improve cash-flow visibility and capital efficiency for tech-led MSMEs.
The Finance Minister’s emphasis on Semiconductor 2.0 with a capital outlay of ₹40,000 crore, the establishment of BioPharma trial sites backed by ₹10,000 crore, and a renewed focus on rare earth mining, processing and manufacturing reflect a strategic push towards strengthening domestic capabilities across critical sectors.
We are particularly excited by the focus on education-to-employment and the assessment of AI’s impact on jobs, which is critical for building globally competitive, future-ready companies. These measures strengthen the foundational rails needed to scale Indian deep tech and position India as a serious global innovation hub.”
Tourism, MSMEs, and Infrastructure: Interconnected Growth Engines
Investments in Tier II/III cities, National Destination Digital Knowledge Grid, National Institute of Hospitality, skilling, and Champion SMEs enhance tourism modernization, corporate travel, and regional economies.
Vinod Sah, CTO and Co-Founder at CoTrav
“The Budget has very aptly positioned tourism, MSMEs and infrastructure as interconnected engines of job creation and regional growth. Investments in Tier II and Tier III cities, digital public infrastructure like the National Destination Digital Knowledge Grid, and focused skilling through institutions such as the National Institute of Hospitality will significantly modernise India’s travel ecosystem. For travel-tech and mobility platforms, this creates a strong foundation to enable compliant, efficient and sustainable corporate travel while empowering local enterprises. The push to create Champion SMEs and strengthen liquidity will further accelerate innovation and formalisation across the sector. Improved access to equity and faster, more reliable cash flows will also give MSMEs greater confidence to expand operations, deepen inter-city business activity, and contribute more consistently to India’s domestic travel economy.”
Electronics and Consumer Tech: Localization and Bharat Empowerment
Enhanced Electronics Component Manufacturing Scheme outlay (₹40,000 crore), ISM 2.0, and Tier II/III infrastructure drive localization, value chains, and affordable tech access.
Arijeet Talapatra, CEO at itel India, welcomed the framework:
“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.”
Macroeconomic Stability and Financial Sector: Continuity with Discipline
The transition to Income Tax Act 2025, PFC/REC restructuring, high-level ‘Viksit Bharat’ banking committee, REIT asset monetization, and ₹12.2 lakh crore capex ensure resilience amid global volatility.
Nilanjan Banik, Professor of Economics and Finance, School of Management, Mahindra University, emphasized stability:
“From a macroeconomic standpoint, Budget 2026 signals continuity and discipline, which markets value. The transition to the Income Tax Act 2025 is a welcome move toward simplicity and transparency for the common taxpayer. By restructuring PFC and REC and forming a high-level committee for ‘Viksit Bharat’ banking, the government is ensuring our financial sector is robust enough to handle global volatility. The push for asset monetization through REITs and the 12.2 lakh crore capex will provide the necessary liquidity to keep the ‘Reform Express’ moving. It is a stable, non-populist budget that prioritizes long-term economic resilience over short-term gains.”
The Union Budget 2026-27 presents a balanced, reform-focused blueprint that integrates fiscal prudence with bold sectoral investments in technology, manufacturing, MSMEs, tourism, and infrastructure. These expert reactions underscore its potential to accelerate inclusive growth, innovation, and self-reliance on India’s path to a developed economy.
Last Updated on: Tuesday, February 3, 2026 12:56 pm by News Proton Team | Published by: News Proton Team on Tuesday, February 3, 2026 11:37 am | News Categories: News