Union budget 2026 bets big on AI, startups and clean manufacturing

NEW DELHI: Union Budget 2026 marked a decisive shift towards building indigenous deep-tech capacity, decentralised startup growth and industrial efficiency, as finance minister Nirmala Sitharaman unveiled an “intelligence-first” strategy to power India’s next phase of economic expansion.

The budget prioritised operationalising the Anusandhan National Research Fund, rolling out capacity-building AI missions and scaling the Genesis programme, alongside a Rs 10,000 crore SME growth fund aimed at broadening access to capital beyond metro cities.

Technology founders across AI, consumer platforms and manufacturing welcomed the focus on patient capital for research and digital public infrastructure, saying it would strengthen domestic intellectual property and bridge the innovation gap between urban India and Bharat.

In renewable manufacturing, the government announced a historic rise in capital expenditure to Rs 12.2 lakh crore and rationalised duties on solar inputs to correct inverted duty structures. Industry leaders said the measures would cut logistics costs, boost domestic value addition and enhance the global competitiveness of Indian solar brands as new freight corridors reshape industrial supply chains.