Finance Minister Nirmala Sitharaman’s Union Budget 2026-27, presented yesterday, delivers a capex-sustained (₹12.2 lakh crore), fiscally anchored (deficit at 4.3% of GDP) blueprint that positions data, AI, and digital public infrastructure as the new frontiers of growth. The budget accelerates India’s emergence as a global AI and data-centre hub through a tax holiday until 2047 for foreign cloud providers using Indian data centres, increased funding for the India AI Mission, the ₹10,000-crore Biopharma Shakti initiative, regional medical tourism hubs, allied health workforce expansion, and a sustained push for Tier-II/III city connectivity and consumption.
Industry leaders have described the budget as visionary, balanced, and execution-ready—particularly for its emphasis on digital sovereignty, healthcare self-reliance, sustainable infrastructure, and unlocking the next wave of growth in non-metro India.
AI, Data Centres & Digital Economy: “Data is the New Territory”
The tax holiday for cloud services tied to Indian data centres, combined with higher India AI Mission allocation, has been hailed as a decisive accelerator for hyperscaler investments and AI workloads, especially targeting the Global South.
Devroop Dhar, Co-Founder & India CEO, Primus Partners, said:
“India is already the fastest growing large market in Data Centers and seeing exponential growth. The announcement of Tax holiday for companies providing cloud services to global organizations using data centers in India would further accelerate setting up data centers and we would see further investment by global and Indian hyperscalers in this space. This would also lead to greater development in the AI space, as they need large investment in data centers and GPUs. India would be able to position itself as the AI and data center capital for the world, especially for the Global South. The increased allocation for the India AI Mission, along with the scale of the upcoming India AI Impact Summit would firmly place India as a top player in the AI space.”
Ms. Manasa Rajan, Co-Founder & CEO, Jupiter Meta Labs, added:
“The Finance Minister emphasized that ‘Data is the new territory, and AI is the new electricity.’ The government has also endorsed the R&D cycles that are necessary for innovation, and increased funding for indigenous cybersecurity solutions to protect the nation’s growing Digital Public Infrastructure (DPI). A strategic deployment of resources in conjunction with India’s newly formalised Data Protection Act. What is most exciting is the budget’s emphasis on Tier 2 and Tier 3 cities. Our market intelligence verifies that these areas are the new engines of economic growth in India, now contributing 62% of all new digital consumers. With the government’s infrastructure push creating enhanced connectivity through high-speed rail corridors and improved public infrastructure, we’re looking at a consumption revolution that will redefine how brands, both native and global, approach the Indian market.”
Mr. Rathnakar Samavedam, Investment Director and Managing Partner, Hyderabad Angles Fund (haf.vc), noted:
“The Budget meets India’s structural requirements over the long term with a strong emphasis on small industries through dedicated funds such as the Small Industries Fund and the Resilient India Fund. The exemption on income tax for data centers gives a big fillip to digital infrastructure, and cross-border e-commerce opportunities unlock new routes for growth. This is a balanced and growth-oriented Budget for the economy and the startup ecosystem.”
Healthcare & Life Sciences: Biopharma Self-Reliance and Patient Access
The ₹10,000-crore Biopharma Shakti programme, regional medical tourism hubs, allied health workforce training, and duty exemptions on critical therapies have been welcomed as a transformative push for innovation, affordability, and holistic care.
Nilaya Varma, Co-Founder & Group CEO, Primus Partners, highlighted the strategic vision:
“The government’s strong focus on strengthening India’s life sciences and healthcare ecosystem marks a decisive shift from manufacturing-led growth to innovation-driven leadership. The ₹10,000 crore investment in biologics and biosimilars, along with the expansion of NIPERs, will accelerate R&D and position India at the forefront of next-generation therapies for non-communicable diseases. The creation of regional medical tourism hubs integrated with world-class AYUSH centres reflects a holistic vision that blends advanced care with traditional wellness, while initiatives such as NIMHANS-2 and new regional mental health institutes will significantly expand access to quality mental healthcare across underserved regions. At its core, this vision strengthens India’s care economy by creating jobs, building capacity, and ensuring long-term social resilience. Measures to strengthen allied health education, upgrade AYUSH testing infrastructure, and support the WHO Global Centre Traditional Medicine will enhance quality, trust and global credibility. Finally, duty exemptions on rare disease therapies and critical drugs reaffirm a patient-first approach, making life-saving treatment more accessible and affordable across the country.”
Dr. Simon Thomas, Senior Director – Robotic Joint Replacements & Orthopaedics, Max Super Speciality Hospital, Shalimar Bagh, said:
“The Union Budget 2026’s strong focus on healthcare and biopharma, particularly through the Biopharma Shakti initiative, is a transformative boost for clinicians managing chronic and complex conditions. By strengthening domestic production of biologic medicines critical for targeted cancer therapies, diabetes management, autoimmune disorders, and emerging regenerative treatments that may help delay or even prevent knee replacement through cartilage regeneration. These measures will improve affordability, expand access, and ensure treatment continuity for patients nationwide. We also welcome the development of regional medical value tourism hubs that integrate private sector partnerships with high-quality manufacturing and research. Together, these initiatives will reinforce India’s position as a global leader in affordable, high-quality healthcare, while simultaneously building robust, homegrown biopharma and regenerative medicine capabilities.”
Dr Harsh Mahajan, Mentor, FICCI Health and Services Founder & Chairman, Mahajan Imaging & Labs, added:
“The Union Budget’s initiatives signal a strong and forward‑looking direction for India’s healthcare ecosystem, and there is clear relevance for diagnostic service providers. The push for Biopharma Shakti with a Rs. 10,000 crore allocation over five years to boost domestic manufacturing of biologics and biosimilars underscores the government’s intent to strengthen advanced treatment availability in India. This will not only help patients access critical therapies but also increase demand for high‑quality diagnostics to guide and monitor those treatments. In addition, the Budget’s plan to establish five regional medical tourism and integrated healthcare hubs in partnership with the private sector, featuring advanced diagnostics, research and rehabilitation facilities provides new opportunities for labs to expand services and strengthen collaborations with hospitals and care centres. The focus on expanding and upgrading the allied health workforce, including training one lakh allied health professionals, reinforces the critical role of skilled diagnostic personnel in delivering accurate and timely patient care across regions. Together, these measures support the diagnostic labs’ mission to scale specialised testing, improve patient access across the country, and contribute to a more resilient and responsive healthcare system in India.”
Infrastructure & Sustainability: Environmental Resilience and Urban Expansion
The record capex allocation and focus on integrated, sustainable systems have been praised for expanding opportunities in water, wastewater, sanitation, and environmental engineering.
Manish Jain, Managing Director, Enviro Infra Engineers Limited, said:
“India’s Union Budget 2026 reinforces the government’s continued commitment to infrastructure led growth, sustainability and environmental resilience. The substantial increase in public capital expenditure to a record ₹12.2 lakh crore underlines a strong push for modern and integrated infrastructure development across transport, logistics, urban and water systems — a priority that directly expands opportunities in water, wastewater, sanitation and environmental engineering. The emphasis on creating new national waterways, enhancing multimodal logistics, and strengthening urban infrastructure aligns closely with our strategic focus on delivering advanced and scalable environmental solutions. This policy environment also merges with broader initiatives to catalyse resilient urbanisation and sustainable economic growth, while supporting state level reforms and long term project pipelines. For Enviro Infra Engineers Limited, these measures not only affirm our positioning in driving sustainable infrastructure outcomes but also motivates further investments in cutting edge technology, skilled human capital and innovative project execution to support India’s development goals. As India accelerates towards inclusive, environmentally responsible growth, the Budget reinforces the role of sustainable engineering as both a national imperative and a business opportunity.”
The Union Budget 2026-27 presents a cohesive, high-conviction strategy: accelerating AI and data-centre leadership, deepening biopharma and healthcare innovation, unlocking Tier-II/III consumption potential, and building resilient, sustainable infrastructure. With fiscal stability intact and implementation now the key variable, stakeholders see this as a pivotal step toward positioning India as a global digital, healthcare, and inclusive-growth powerhouse en route to Viksit Bharat by 2047.
Last Updated on: Thursday, February 5, 2026 10:43 am by News Proton Team | Published by: News Proton Team on Thursday, February 5, 2026 10:43 am | News Categories: India, Technology