Union Budget 2026-27: Infrastructure De-risking, Tech Self-Reliance and Digital Economy Take Centre Stage

New Delhi, February 3, 2026 — Finance Minister Nirmala Sitharaman’s Union Budget 2026-27 delivers a clear message: India is doubling down on infrastructure-led growth, technological self-reliance and digital transformation while continuing measured fiscal consolidation.

With capital expenditure set at ₹12.2 lakh crore, the introduction of an Infrastructure Risk Guarantee Fund, acceleration of asset monetisation through sector-specific REITs, and major new initiatives in semiconductors, critical minerals, biopharma, AI and startups, the budget aims to remove long-standing bottlenecks in project financing, supply-chain resilience and technology adoption.

Industry leaders have welcomed the moves as forward-looking and execution-oriented, though some sectors continue to seek more direct demand-side stimulus.

Infrastructure: De-risking Projects and Unlocking Capital

The creation of the Infrastructure Risk Guarantee Fund and push for asset monetisation via dedicated REITs for CPSE-owned real estate have been highlighted as key steps to improve risk appetite and liquidity in the sector.

Mr. Sunil Nair, CEO of Ramky Infrastructure Ltd, described the budget as a balanced and confidence-building framework:

“The Union Budget 2026 underscores a clear continuity of confidence in India’s infrastructure growth story. The proposal to establish an Infrastructure Risk Guarantee Fund is a particularly forward‑looking intervention, it directly addresses one of the biggest hurdles in the sector: risk perception during the early stages of project development and construction. By offering partial credit guarantees to lenders, the Fund will not only ease financing bottlenecks but also embolden private players to invest in new, large‑scale projects with greater assurance.

Equally significant is the government’s move to accelerate asset monetisation through dedicated Real Estate Investment Trusts (REITs) for Central Public Sector Enterprise (CPSE) owned real estate. This will unlock dormant capital, enhance liquidity in the system, and catalyse a new wave of investments across allied sectors like logistics, housing, and industrial infrastructure.

Complementing these reforms, the Budget’s thrust on industrial infrastructure through the Chemical Park and bulk drug park, Biopharma Shakti schemes enhances India’s manufacturing and innovation ecosystem. The Chemical Park and bulk drug park will create plug‑and‑play clusters to boost domestic chemical production and reduce imports, while the ₹10,000 crore Biopharma Shakti initiative aims to build a globally competitive biopharma ecosystem through new NIPERs, clinical trial networks, and upgraded regulatory standards.

Finally, with a proposed capital expenditure of ₹12.2 lakh crore for FY 2026‑27, the Budget reaffirms infrastructure as the backbone of India’s economic momentum.”

Real Estate & Urban Development: Strong Indirect Boost

The real estate sector sees the budget as laying strong groundwork for urban expansion and corridor-based development.

Mr. Manish Jain, President, CREDAI Pune, noted:

“The Union Budget 2026–27 is a strong vote of confidence in India’s urban growth story and reinforces the Government’s long-term commitment to planned urban transformation. The sustained focus on infrastructure investment, City Economic Regions, high-speed rail connectivity and enhanced public capex will directly translate into higher demand for housing, commercial spaces and integrated townships, particularly across Tier II and Tier III cities. The proposed high-speed rail corridors, including the Mumbai–Pune route, will significantly improve regional accessibility and provide a major fillip to real estate development along growth corridors. Measures such as monetisation of CPSE real estate assets through REITs and the Infrastructure Risk Guarantee Fund will further improve capital flows and execution confidence for developers. While there are no direct fiscal incentives for homebuyers, the Budget lays a solid foundation for stable, structured and regionally balanced growth of the real estate sector.”

Technology, AI & IT Services: Safe Harbour, Deep-Tech and Semiconductor Push

The budget has introduced several measures welcomed by the technology and startup ecosystem, including raising the safe harbour threshold for IT services to ₹2,000 crore, a ₹10,000 crore growth fund for startups and MSMEs, and the launch of India Semiconductor Mission 2.0 with ₹40,000 crore outlay for electronic components.

Mr. Satya Yeruva, Co-Founder & CEO of FinStackk, said:

“It is a positive step that the Union Budget has enhanced the safe harbour threshold for IT services to Rs 2,000 crore from Rs 300 crore. Bringing all IT companies under a single, uniform safe harbour category will simplify compliance, reduce uncertainty, and make tax obligations far more predictable. This change benefits not just small and mid-sized companies, but larger firms as well, lowering the risk of litigation and enabling them to expand globally with confidence. The allocation of Rs 10,000 crore as a growth fund for startups and MSMEs is equally encouraging, as it provides the capital and support needed to scale their operations, innovate, and contribute to India’s growing digital economy.”

Manu Iyer, General Partner and Co-founder, Bluehill.VC, called ISM 2.0 a watershed moment:

“The launch of India Semiconductor Mission 2.0 in the Union Budget 2026-27 is a watershed moment for India’s technology and manufacturing landscape. By significantly expanding support for domestic semiconductor equipment, materials, design, and supply-chain capabilities, ISM 2.0 will accelerate India’s journey towards self-reliance in advanced chips and position the country as a globally competitive semiconductor hub. Coupled with the strategic decision to establish dedicated rare earth corridors across mineral-rich states — strengthening mining, processing, research and manufacturing of critical minerals — this Budget not only deepens the foundation for high-tech growth but also enhances supply-chain resilience in sectors from electronics to defense and clean energy.”

Security, Digital Infrastructure & Emerging Tech Adoption

Aditya Prabhu, CEO & Co-Founder, Secutech Automation, highlighted the alignment with intelligent infrastructure:

“The Finance Minister’s Union Budget 2026 presentation reinforces a critical shift in India’s growth narrative, where digital transformation, AI adoption, and infrastructure expansion are moving in tandem… The focus on technology-led efficiency and improved credit flow can accelerate the adoption of AI-driven, interoperable security platforms, particularly among MSMEs and infrastructure operators. No doubt, it’s a clear signal that technology-first, resilient systems will underpin India’s next phase of growth.”

Pankit Desai, Co-founder & CEO, Sequretek, pointed to cybersecurity and digital economy momentum:

“The Union Budget 2026 made the growth of India’s digital economy as one of the core focus area of growth of the economy… The announcement on raising the safe harbour limit to Rs 2000 crore for IT and ITES companies will benefit the sector immensely… Additionally, the tax holiday for setting up data centres in India by foreign cloud companies gives out a strong signal as the world looks at India as a major GCC centre.”

Capital Markets & Investor Sentiment

Some voices expressed concern over changes in the Securities Transaction Tax (STT) on futures and options.

Bruce Keith, CEO & Co-Founder, InvestorAi, commented:

“The ongoing fiscal discipline and general move towards tax harmonisation is welcome… Perhaps the biggest surprise to me was the increases in Securities Transaction Tax (STT) on futures and options premium by 150% and 50% respectively. The Government doesn’t like that 90%+ people lose money in F&O so have chosen to make it more expensive. In my view this is the wrong lever to this problem. Better to look at education and AI rather than risk collateral damage from a reduction in big volume players causing liquidity to shrink.”

The Union Budget 2026-27 presents a coherent strategy: de-risk large-scale infrastructure, accelerate technology self-reliance, strengthen the digital economy, and support manufacturing and innovation ecosystems. While direct consumption boosters are limited, the emphasis on capital formation, policy predictability and long-term competitiveness has been broadly welcomed by industry leaders.

Success now hinges on swift implementation, transparent allocation, and effective coordination across ministries and state governments.

Last Updated on: Tuesday, February 3, 2026 8:35 pm by Republic Post Team | Published by: Republic Post Team on Tuesday, February 3, 2026 8:35 pm | News Categories: India, Startup

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