The Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman on February 1, 2026, has been hailed as a Yuva Shakti-driven roadmap, prioritizing India’s demographic dividend through skilling, employability, emerging technologies, and inclusive growth. With a strong emphasis on transforming education into a talent pipeline for Viksit Bharat, the budget introduces measures to bridge academia and industry, reduce financial barriers to learning, and position India as a global leader in AI, semiconductors, and digital infrastructure.
A standout reform is the reduction in Tax Collected at Source (TCS) on overseas education and medical remittances under the Liberalised Remittance Scheme from 5% to 2%. This eases the burden on families pursuing international opportunities.
Adyasha Mohanty from Value360 India highlighted the relief:
“The Union Budget 2026 is good news for young workforce. Families will save money and more people will be able to get a good education as the TCS on education and medical costs is lowered from 5% to 2%. This is especially important now that everyone needs to learn new skills.”
Mr. Prateek Shukla, Co-Founder and CEO of Masai, praised the tech-forward approach:
“The government’s strong focus on growth driven by technology is what stands out the most. The emphasis on artificial intelligence, emerging technologies, and industry-led research aligns well with the realities of today’s job market… Initiatives like the proposed ‘Education to Employment and Enterprise’ Standing Committee acknowledge a long-overdue need to bridge the gap between degrees and real-world employability… The introduction of ISM 2.0 with an outlay of 40,000 crores will enhance India’s long-term aspirations in the semiconductor industry… Viksit Bharat is built when education stops being a credential factory and becomes a talent pipeline. Budget 2026 should fund that shift.”
Mr. Siddharth Iyer, COO of OneStep Global, noted the global dimension:
“This year’s Union Budget reinforces India’s commitment to building future-ready talent… The decision to reduce the Tax Collected at Source on overseas education remittances… from 5% to 2% is a welcome step that eases financial planning for families and lowers practical barriers to pursuing international education.”
Mr. Sripal Jain, Co-founder of Simandhar Education, emphasized professional education:
“The Union Budget 2026 sends a strong signal that professional, career-focused education is central to India’s workforce strategy. By enabling institutions such as ICAI and ICSI to design short-term modular programmes aligned with employability…”
Mr. Amit Baveja, Managing Director of Burlington English India & South Asia, stressed foundational skills:
“The Union Budget 2026 reinforces India’s commitment to human capital development… As technology reshapes workplaces… communication and language proficiency have become core professional skills… For India’s youth power to translate into sustainable opportunity, these foundational skills must be part of the conversation alongside technical training.”
Dhruv Krishnaraj, Co-Founder & Director of Student Circus, appreciated the long-term vision:
“Budget 2026 deserves appreciation for reinforcing long-term stability and employment creation… With international exposure, strong English and communication skills… this cohort is well positioned to contribute meaningfully to a Viksit Bharat.”
In the startup and deep-tech space, the budget’s ₹1 lakh crore DeepTech fund, National Compute Credits, and the ‘Education to Employment and Enterprise’ committee were lauded for enabling AI-driven job creation and innovation.
Manas Pal, Co-Founder of PedalStart, said:
“The 2026 Budget marks a pivotal moment for India’s startup ecosystem… This Budget’s focus on expanding digital and data infrastructure, strengthening funding channels, and enabling AI and deep-tech innovation lays a more predictable and strategic foundation for startups to scale…”
Inderjit Makkar, Founder & CEO of Factacy AI, added:
“Budget 2026 has officially turned AI into a national utility for Viksit Bharat. The ₹1 lakh crore DeepTech fund and National Compute Credits solve the infrastructure hurdle, while the ‘Education to Employment and Enterprise’ (EEE) committee ensures AI drives massive job generation. For Factacy, this validates our AIaaS mission: leveraging sovereign intelligence to help India capture its goal of a 10% global share in services exports by 2047.”
The budget bolsters digital infrastructure with a tax holiday until 2047 for global cloud providers using India-based data centres, positioning the country as an AI and compute hub.
Mr. Sudhir Kunder, CBO of DE-CIX India, commented:
“The Budget 2026 tax holiday for global cloud providers using India-based data centres is a decisive policy move that positions India as a long-term digital infrastructure and AI growth hub. As hyperscalers expand, the real differentiator will be resilient, carrier-neutral interconnection that enables low-latency access, ecosystem depth, and scalable digital economies.”
For the textile sector, initiatives include fibre self-reliance, cluster modernisation, Samarth 2.0 skilling, mega textile parks, and a ₹10,000 crore allocation to boost exports and jobs.
P Senthilkumar, Senior Partner at Vector Consulting Group, observed:
“Budget 2026–27 signals a clear move to structurally strengthen India’s textile and garment sector… The initiatives will enhance productivity through three core elements: fibre self-reliance, modernisation of traditional clusters, Samarth 2.0 skilling programs, and the operation of mega textile parks… The implementation of these actions requires an export policy system that delivers consistent results…”
Overall, the Union Budget 2026-27 charts a forward-looking path, blending fiscal prudence with bold investments in youth, technology, and employability to accelerate India’s journey toward a developed economy by 2047. Industry leaders view it as a decisive step in aligning education, skills, and innovation with global competitiveness.
Last Updated on: Tuesday, February 3, 2026 7:36 pm by Digital Herald Team | Published by: Digital Herald Team on Tuesday, February 3, 2026 7:36 pm | News Categories: Startup, News