Budget 2026: AI and Deep-Tech Startups Seek Policy Push for Market Adoption and Global Scale

With artificial intelligence and deep-tech emerging as key pillars of India’s innovation economy, startups and technology leaders are looking to the Union Budget 2026 for a clear, long-term roadmap that strengthens domestic capabilities while enabling global competitiveness.

Industry leaders say that AI-led enterprises are already delivering impact across various sectors, including healthcare, fintech, retail, manufacturing, and governance, and now require policy support to scale faster and more responsibly.

AI Startups Seek Structural Support and Responsible Frameworks

Priyanka Aeron, Co-founder of Thrive Brands AI, said the upcoming Budget presents an opportunity to accelerate India’s deep-tech momentum.

“AI-based enterprises are no longer just experimenting but are already making a difference across multiple sectors,” Aeron said. “The government’s backing can significantly increase the pace of innovation, productivity, and India’s global market position.”

She emphasized the importance of reducing compliance burdens and strengthening public-private collaboration to help startups reach markets faster.

“Simplified compliance frameworks and public-private partnerships can help startups gain access to markets more efficiently and create meaningful solutions,” she said, adding that a balanced approach to responsible AI remains critical.

According to Aeron, long-term investments in AI skills, ethical governance structures, and industry collaboration are essential to building trusted innovation.

“For us at Thrive Global, we expect the Budget to deliver long-term structural support for AI startups, empowering founders to build globally competitive solutions while strengthening India’s aspiration to be a reliable AI leader.”

Also read: Kerala Budget 2026: Welfare, Education, & Infrastructure Get Major Push

Market Creation Key for Deep-Tech Adoption

Dr Sunil Shekhawat, Co-Founder and CEO of SanchiConnect, said that while previous Budgets have laid a solid foundation, the next phase must focus on domestic market development.

“The Union Budget 2025 laid a strong foundation for innovation-led growth by reinforcing support for AI and deep-tech startups,” he said. “As we approach Budget 2026, we expect top-up policies that support market development and adoption.”

Drawing parallels with the government’s earlier support for the drone industry, Shekhawat said similar approaches could help scale emerging technologies.

“We would expect a comparable strategy for quantum, AI, space tech, material sciences, and semiconductors. Indigenous R&D alone is not enough without policies that create domestic demand,” he noted.

He added that in a volatile geopolitical environment, strong domestic technology markets are critical for long-term resilience.

Digital Engineering and AI Exports Poised for Growth

India’s software and digital product development industry is also optimistic about sustained global demand, particularly in AI-driven services.

Abhinav Singh, CEO of Techugo, said digital engineering and software exports are expected to grow steadily over the next few years.

“India’s digital engineering and software exports are projected to grow at 12–15% annually over the next two to three years, with AI services alone expected to see nearly 25% CAGR,” Singh said.

Industry estimates suggest India’s IT and digital services exports could reach $250–270 billion by 2027, driven largely by demand from North America and Europe. Fintech, healthcare, retail, logistics, and consumer internet sectors account for over 60% of digital product engineering demand, he added.

Singh highlighted AI’s role in boosting productivity and speed.

“AI enables shorter development cycles, smart automation and hyper-personalisation, helping reduce time-to-market by 20–30%,” he said.

What the Tech Sector Wants from Budget 2026?

Across AI, deep-tech, and software services, industry leaders are aligned on key expectations from the upcoming Budget:

• Increased investment in AI and deep-tech R&D

• Clear data governance and cross-border data flow policies

• Market-creation initiatives to drive domestic adoption

• Easier access to venture capital for technology startups

• Large-scale skilling programmes in AI, cloud, and cybersecurity

Stakeholders say targeted Budget measures could help India not only maintain its momentum but also cement its position as a global hub for next-generation digital innovation.

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