Budget 2026 Tech Sector: Finance Minister Nirmala Sitharaman is going to present the Union Budget 2026-27 today on 1 February. Not only big industries, but also common and lower middle class families have their eyes on this budget. The reason is clear, technology, especially smartphones, internet and digital services, have become a necessity in today’s life. In such a situation, the budget decisions regarding the tech sector are directly to the pocket and future of the common man.

Preparation to make AI a useful technology, not just for show

Economic Survey calls Artificial Intelligence (AI) a ‘prestige race’ Rather, it has been described as an economic strategy. That means the government’s focus can be on AI solutions that solve grassroots problems like agriculture, health, education and small business. The tech industry wants the budget to provide solid funding and policy support for applied AI, domain-specific models and open systems, so that affordable and useful AI tools can be developed in India.

Demand to increase spending on digital infrastructure

IT and tech companies are seeing the next phase of digital public infrastructure as AI-integrated systems. Increasing government spending on cloud, data platforms and smart workplace can increase both productivity and employment. The demand for tax incentives and capital support for the enterprise sector is also gaining momentum.

Semiconductor: The backbone of tech growth

Semiconductors are essential for AI and digital devices. The industry believes that the India Semiconductor Mission and PLI scheme have made a start, but now ISM 2.0 needs stronger funding and easier approval system. Tax stability and long-term policies can strengthen India’s chip supply chain.

Will smartphones be cheap?

Relief in GST or custom duty on smartphones is expected in Budget 2026. It is not necessary that this makes the phones cheaper immediately, but it may put a brake on the big increase in prices. Especially entry and mid-range 5G phone users can get relief. The industry says that by promoting local component manufacturing, both costs and prices will remain under control.

Drones, deep tech and new jobs

New ‘drone scheme’ in the budget And there is a possibility of funding for deep tech startups. This will bring changes in sectors like agriculture, defense and logistics and manufacturing hubs can develop in small cities. Overall, today’s budget will decide whether technology will be limited only to big companies or will make the life of the common man truly easier and cheaper.