Union Budget 2026-27: AI & Data Centres Surge, Infrastructure Modernisation and Healthcare Innovation Take Centre Stage
Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 yesterday, delivering a capex-sustained (₹12.2 lakh crore), fiscally disciplined (deficit at 4.3% of GDP) roadmap that prioritises digital economy acceleration, infrastructure modernisation, life sciences self-reliance, and public health resilience. Key announcements include a tax holiday until 2047 for foreign cloud providers using Indian data centres, increased allocation for the India AI Mission, the ₹10,000-crore Biopharma Shakti programme, a five-year ₹10,000-crore container manufacturing scheme, high-speed & freight corridor development, the Infrastructure Risk Guarantee Fund, regional medical tourism hubs, NIMHANS-2, and duty exemptions on select lifesaving drugs.
Industry experts have welcomed the budget as strategic, execution-oriented, and forward-looking, positioning India as a potential global leader in AI/data infrastructure, biopharma innovation, logistics self-reliance, and integrated healthcare.
AI, Data Centres & Digital Economy: Positioning India as Global Hub
The tax holiday for cloud services using Indian data centres, combined with enhanced India AI Mission funding, has been hailed as a decisive accelerator for hyperscaler investments and AI workloads.
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.”
Infrastructure & Logistics: Modal Shift and Self-Reliance
The budget’s emphasis on high-speed & freight corridors, the Infrastructure Risk Guarantee Fund, and the ₹10,000-crore container manufacturing scheme aims to lower logistics costs, attract private capital, and reduce import dependence.
Pragya Priyadarshini, Managing Director, Primus Partners, noted:
“This year’s budget presents a balanced and forward-looking blueprint for infrastructure, highlighting development of high-speed and freight corridors to reduce logistics cost and time while encouraging a modal shift from road to rail and waterways. The Infrastructure Risk Guarantee Fund will help improve project bankability by mitigating risks and attracting private capital. A ₹10,000-Crore, five-year container manufacturing scheme will help India reduce reliance on foreign suppliers and strengthen self-reliance in line with Atmanirbhar Bharat. Greater domestic production will stabilise container availability and reduce logistics costs, enhancing trade competitiveness. These steps collectively are a journey towards an integrated, future-ready ecosystem, which now needs effective and timely implementation.”
Anurag Singh, Advisor, Primus Partners, added on the auto & commercial vehicle impact:
“The infrastructure push will directly effect the construction equipment and heavy commercial vehicles. GST cuts and increased spending on infrastructure are both positive for the Commercial vehicle industry.”
Healthcare & Life Sciences: Innovation, Access and NCD Focus
The ₹10,000-crore Biopharma Shakti initiative, NIPER expansion, regional medical hubs blending modern and AYUSH care, NIMHANS-2, and duty exemptions on critical therapies have been praised as a holistic push for affordable innovation and public health resilience.
Nilaya Varma, Co-Founder & Group CEO, Primus Partners, highlighted the strategic shift:
“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.”
Sunita Mohanty, Managing Director, Primus Partners, emphasised the NCD and FMCG angle:
“India’s growing burden of non-communicable diseases such as diabetes, cancer, and autoimmune disorders is a wake-up call for the private sector. The Economic Survey 2025–26 has clearly linked the rise of ultra-processed and high fat, sugar, and salt products to worsening metabolic health, putting the country’s longevity dividend at risk. The Union Budget’s focus on NCDs sends a strong message to FMCG, food, beverage, and pharmaceutical companies to move beyond mere compliance and become strong partners in public health through clear front-of-pack labelling, healthier reformulations, and more responsible business practices.”
Textile Sector: Modernisation and Global Value Chain Integration
The spotlight on modernised textile infrastructure and skill upgradation has been seen as a major boost for foreign investment and export competitiveness.
Kanishk Maheshwari, Co-Founder & Managing Director, Primus Partners, observed:
“Textile Sector has been in the major spotlight among the sectors, especially the focus building modernized infrastructure and skill upgradation. This strategic focus will provide a significant boost to foreign investments and link our indigenous textile units to the global value chain.”
The Union Budget 2026-27 charts a clear, multi-sectoral path: accelerating AI and data centre leadership, modernising logistics and infrastructure for self-reliance, elevating biopharma and healthcare innovation, and strengthening textiles for global integration. With fiscal prudence maintained and implementation now the critical test, stakeholders view the budget as a solid foundation for resilient, innovation-led growth toward Viksit Bharat by 2047.
Last Updated on: Thursday, February 5, 2026 10:36 am by Republic Post Team | Published by: Republic Post Team on Thursday, February 5, 2026 10:36 am | News Categories: India, News
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