The Union Budget 2026-27, presented on February 1, 2026, by Finance Minister Nirmala Sitharaman, marks a pivotal step toward India’s vision of Viksit Bharat (Developed India). With a strong emphasis on Yuva Shakti-driven growth, enhanced public capital expenditure of ₹12.2 lakh crore, fiscal consolidation (targeting 4.3% deficit), and targeted sectoral reforms, the budget prioritizes infrastructure, manufacturing, healthcare innovation, tourism, and emerging technologies like AI and cloud infrastructure.
Industry leaders from diverse sectors have welcomed these measures, highlighting their potential to drive innovation, job creation, and long-term economic resilience. Here are key reactions from prominent CEOs and founders:
Healthcare and Longevity: A Shift to Preventive and Precision Medicine
The launch of the Biopharma SHAKTI scheme with a ₹10,000 crore commitment over five years stands out as a game-changer for biologics, biosimilars, and precision medicine. This initiative aims to position India as a global hub for advanced biopharma manufacturing and research.
Parth Amin, CEO & Co-Founder of Decode Age, described it as a “definitive signal” for India’s longevity revolution:
“The Union Budget 2026-27 is a definitive signal that India is ready to lead the longevity revolution. For years, we have argued that the future of healthcare lies in targeting the biological roots of aging rather than just managing end-stage disease. With the launch of the Biopharma SHAKTI scheme, the government has provided the missing piece of the puzzle: a massive ₹10,000 crore commitment to the science of biologics and precision medicine.
This budget effectively ends the era of ‘sick-care’ and marks the beginning of a data-led, preventive era. By prioritizing advanced research infrastructure and clinical networks, the government is creating the exact ecosystem needed for companies like Decode Age to scale life-extending innovations. We are no longer just talking about longevity. We are building a future where every Indian can expect more years of peak health and productivity. The mandate is clear: it is time to shift the focus from merely surviving to truly thriving.”
Dr Varun Gupta, Co-Founder of NoWound by Medvital, praised the focus on strengthening district hospitals and emergency care:
“We welcome the Government’s decision to strengthen district hospitals and expand emergency and trauma care capacity. As a Make-in-India new age medtech company, we are committed to contributing in every possible way—by enabling access to advanced, standard-of-care advanced technologies for trauma and complex wound patients, and by working closely with public hospitals to improve reach, affordability, and outcomes.”
Infrastructure and Power Transmission: Boosting Grid Expansion and Energy Security
Continued emphasis on public capex, Dedicated Freight Corridors, city economic regions, the Infrastructure Risk Guarantee Fund, and asset monetisation via REITs supports grid modernisation and renewable integration.
Rajesh Kumar Singh, CEO of Jyoti Structures Ltd., noted:
“The Union Budget 2026–27 provides a strong and sustained policy signal for the expansion and modernisation of India’s power transmission and infrastructure ecosystem. The continued thrust on public capital expenditure, development of new Dedicated Freight Corridors, creation of city economic regions, and targeted investments to ensure long-term energy security are critical enablers for strengthening the national grid and supporting India’s growing power demand. Measures such as the proposed Infrastructure Risk Guarantee Fund and accelerated asset monetisation through REITs are expected to improve financing confidence, reduce execution risks and facilitate timely completion of large-scale EPC projects. For Jyoti Structures, with a proven track record in executing extra high-voltage transmission lines, substations and turnkey grid projects across India and international markets, the Budget creates a conducive environment to support grid expansion, renewable energy integration and cross-regional connectivity, while reinforcing India’s broader electrification and infrastructure development priorities.”
Tourism and Hospitality: Driving Jobs and Sustainable Growth
Initiatives like the National Institute of Hospitality, talent upskilling, digital infrastructure, and support for midscale hotels in Tier II/III cities signal tourism as a major growth driver.
Aditya Sanghi, CEO of Hotelogix, highlighted:
“The Union Budget 2026–2027 sends a clear signal that the Indian tourism and hospitality industry is one of the most important drivers of jobs and growth. Enabling this industry through initiatives such as a National Institute of Hospitality, talent upskilling, and digital infrastructure are welcome steps. However, execution on the ground will define success in the long run. It must empower homegrown midscale hotels in Tier II/III markets to access modern solutions and a skilled workforce easily to thrive sustainably. At Hotelogix, we see this as a pivotal moment to support hotels in this segment with cloud-led, scalable technology that helps them ensure smarter operations and deliver consistently better guest experiences.”
Mr Chirag Agarwal, Co-founder & CEO of TravClan, appreciated the TCS reduction:
“The Union Budget 2026 takes a constructive step towards addressing some long-standing operational challenges faced by outbound travel businesses. The reduction of TCS on overseas tour packages to 2% is a welcome move and will ease immediate cash-flow pressure for both travellers and agents, particularly in high-volume, cross-border transactions.
Effective implementation will now be critical. Clear guidance on refund timelines, reconciliation processes and system readiness will determine how quickly this relief translates into day-to-day business operations. Beyond taxation, access to formal credit for booking-led travel businesses remains an important gap, as traditional lending frameworks still do not fully account for advance collections and extended settlement cycles.
As outbound demand continues to expand from non-metro markets, sustained policy focus on international connectivity, efficient payment systems and regulatory simplicity will be important to support long-term growth. Overall, the Budget signals positive intent, and targeted follow-through can further strengthen the operating environment for Indian travel businesses.”
AI, Cloud, and IT Services: Tax Certainty and Infrastructure Incentives
Proposals clubbing software development, IT-enabled services, KPO, and contract R&D under one “Information Technology Services” category with a uniform 15.5% safe harbour margin (threshold raised to ₹2,000 crore), automated approvals, five-year continuity, and tax holidays until 2047 for foreign cloud providers using Indian data centres boost India’s appeal as an AI and cloud hub.
Sharad Sanghi, CEO & Co-Founder of Neysa, emphasized:
“The Union Budget 2026–27 provides much-needed structural clarity for India’s AI and cloud infrastructure ecosystem. The government’s proposal to club software development, IT-enabled services, knowledge process outsourcing, and contract R&D services relating to software development under a single category of information technology services, with a uniform safe harbour margin of 15.5% and an expanded eligibility threshold from ₹300 crore to ₹2,000 crore, significantly improves tax certainty for larger technology and services companies operating at scale. By moving to automated, rule-driven safe harbour approvals and enabling five-year continuity, the regime meaningfully reduces friction and compliance overheads.
Equally consequential is the proposal to offer a tax holiday until 2047 for foreign companies providing cloud services to customers outside India using data centre services based in India, along with a 15% safe harbour on cost for related Indian entities delivering those data centre services. These measures directly strengthen India’s attractiveness as a hub for cloud and AI infrastructure and support the shift towards domestically hosted compute.
“For Neysa, which is focused on building cloud-native AI platforms on resilient, India-based infrastructure, these announcements create a predictable and enabling environment to help enterprises move from pilots to large-scale AI deployment. By addressing tax certainty for IT services, incentivising global cloud services anchored on Indian data centres, and encouraging fresh data centre investment together, the Budget lays a strong foundation for India’s next phase of enterprise AI adoption.”
Overall, the Union Budget 2026-27 reflects a balanced, reform-oriented approach that aligns fiscal prudence with ambitious sectoral pushes. Industry experts view it as a catalyst for innovation, inclusivity, and sustainable growth across healthcare, infrastructure, tourism, and technology.
Last Updated on: Tuesday, February 3, 2026 10:10 am by Digital Herald Team | Published by: Digital Herald Team on Tuesday, February 3, 2026 10:10 am | News Categories: News