The Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman on February 1, 2026, continues the momentum of execution-led growth under Viksit Bharat. With public capital expenditure hiked to ₹12.2 lakh crore (3.1% of GDP), a fiscal deficit targeted at 4.3%, and sustained focus on infrastructure, digital services, logistics, and the creative economy, the Budget reinforces India’s position as a global hub for technology, manufacturing, and content creation amid projected GDP growth of 6.8-7.2%.
Industry leaders from digital engineering, logistics, communications, film production, and business development share insights on how these measures support long-term transformation, infrastructure efficiency, and emerging sectors like AVGC and the Orange Economy.
Digital Engineering and Cloud Infrastructure: Tax Clarity Fuels AI-Ready Growth
Consolidating IT-enabled services, KPO, and contract R&D into a single category with a 15.5% safe harbour margin (threshold raised to ₹2,000 crore), alongside long-duration tax holidays until 2047 for foreign cloud providers using India-based data centres and 15% safe harbour for related entities, provides predictability for multi-year digital transformations.
Sumed Marwaha, Managing Director – AHEAD India, emphasizes the ecosystem alignment.
“The Union Budget 2026-27 rightly doubles down on India’s strengths as a global digital engineering and services hub. Consolidating IT‑enabled services, KPO and contract R&D into a single information technology services category with a uniform 15.5% safe harbour margin and an enhanced ₹2,000 crore threshold brings the policy framework much closer to how large, integrated transformation programmes are actually delivered on the ground. This added clarity and predictability is critical for enterprises committing to multi‑year modernisation journeys across cloud, data and applications. Equally important is the Budget’s emphasis on cloud and data centre infrastructure from the long‑duration tax holiday until 2047 for foreign companies providing global cloud services from India‑based data centres to the 15% safe harbour on cost for related data centre entities. Together, these measures will catalyse fresh investment into high‑performance, secure, and scalable infrastructure, the foundation for cloud‑first, AI‑ready, and automation‑driven environments that modern enterprises now depend on. For AHEAD, which helps organisations modernise core infrastructure, build custom AI‑ready platforms across cloud, core, and edge, and simplify operations through automation and observability, this Budget materially strengthens the surrounding ecosystem. It aligns policy, infrastructure, and talent towards a common objective, enabling enterprises to execute digital transformation with greater speed, reliability, and impact, while reinforcing India’s position as a strategic, long‑term delivery base for global digital initiatives.” — Sumed Marwaha, Managing Director – AHEAD India
These reforms position India as a preferred base for AI-driven, cloud-first enterprises.
Logistics and Infrastructure: De-Risking for Sustainable Supply Chains
The ₹12.2 lakh crore capex, new freight corridors (Dankuni-Surat), 20 additional national waterways, coastal cargo promotion, seven high-speed rail corridors, Infrastructure Risk Guarantee Fund, dedicated REITs, and ₹5,000 crore for City Economic Regions in Tier II/III cities aim to enhance connectivity, green logistics, and last-mile efficiency.
Dhruv Taneja, Founder & Global CEO, MatchLog, highlights the sustainability potential.
“The Union Budget 2026–27 delivers a visionary blueprint for India’s logistics backbone, with public capex rising to ₹12.2 lakh crore, new freight corridors between Dankuni and Surat, 20 additional national waterways, coastal cargo promotion, and seven high-speed rail corridors all pointing to a clear focus on faster, greener cargo movement and last-mile connectivity. The creation of an Infrastructure Risk Guarantee Fund, dedicated REITs for CPSE real estate recycling, and a ₹5,000 crore outlay for City Economic Regions in Tier II and III cities further underline the intent to de-risk long-gestation projects and anchor logistics growth where demand is actually emerging. Equally important are the trust-based customs and warehousing reforms and the proposed container manufacturing scheme, which can strengthen India’s position in global trade flows. The next big unlock now lies in directly incentivising container reuse and reduction of empty runs, backed by data-driven frameworks for measurable emission reduction. Clear signals on technology adoption, reuse-led models, and outcome-based incentives would help scale digital platforms faster and make India’s supply chains not just more efficient, but genuinely sustainable.” — Dhruv Taneja, Founder & Global CEO, MatchLog
Additional incentives for container reuse could accelerate emission reductions and digital platform adoption.
Creative and Orange Economy: Building Credibility in Content Creation
Recognition of the Orange Economy through AVGC skilling, content creator labs (via the Indian Institute of Creative Technologies, with labs in 15,000 schools and 500 colleges), and digital storytelling initiatives supports talent nurturing and original IP development.
Naina Aggarwal Ahuja, Founder, Talking Point Communications U/O IJCP Group, stresses sustained support.
“The Union Budget 2026–27’s recognition of the creator economy through the Orange Economy framework and large-scale AVGC content creator labs is a welcome step in formally acknowledging content creation and digital storytelling as part of India’s skilling and services landscape. What will now be critical is sustained support beyond training, including clearer pathways for creators, platforms and institutions to build credibility, manage public engagement and scale responsibly. As this ecosystem expands, strategic communication will play a key role in shaping trust, visibility and long-term relevance.” — Naina Aggarwal Ahuja, Founder, Talking Point Communications U/O IJCP Group
Ankit Ahuja, Founder, Red Comet Films, U/O IJCP Group, echoes the need for collaboration.
“The Union Budget 2026–27 underlines a clear intent to strengthen India’s content creation and creative ecosystem through focused support for the Orange Economy, AVGC skilling, content creator labs and digital storytelling initiatives. This approach recognises the importance of building creative capacity, nurturing talent and enabling original IP at scale. The opportunity now lies in translating these interventions into sustained collaboration between creators, studios and institutions to develop globally relevant content from India.” — Ankit Ahuja, Founder, Red Comet Films, U/O IJCP Group
These steps aim to meet projected demand for millions in AVGC professionals by 2030.
Ripple Effects of Infrastructure and Services Push
Adrija Agarwal, Founder, Sattva Ventures; VP Business Development, Sattva Group, notes broader economic benefits.
“The focus on infrastructure spending has a real ripple effect. Better connectivity improves ease of travel, enables more efficient sharing of resources, and leads to stronger utilisation across manufacturing and infrastructure. This helps accelerate consumption and creates a more balanced economy. The scale of the capex push reflects fiscal prudence and a long-term, structural approach to growth. The push to strengthen the service economy through supportive tax structures for data centres and Global Capability Centres will build growth momentum, accelerate value creation, and reinforce India’s position as a preferred destination for global enterprises.” — Adrija Agarwal, Founder, Sattva Ventures; VP Business Development, Sattva Group
Conclusion: A Budget for Structural Momentum and Inclusive Execution
The Union Budget 2026-27 balances fiscal discipline with targeted investments in digital infrastructure, logistics, and creative sectors to drive sustainable, high-quality growth. By enhancing tax certainty, de-risking projects, and skilling for emerging economies, it empowers businesses and talent to contribute to India’s long-term vision.
