Anticipations for India’s Union Budget 2026-2027: Focus on Technology and Consumer Electronics
On February 1, Finance Minister Nirmala Sitharaman will unveil the Union Budget for 2026-2027 in Parliament, stirring a wave of anticipation across various sectors, especially technology and consumer electronics. As India gears up to become the world’s fourth-largest economy—driven by manufacturing prowess and digital innovation—the expectations surrounding this budget are notably high. Industry leaders from companies like Panasonic, Lava, Mobisoft, Ambrane India, Kellton Technologies, and Ai+ are voicing their hopes for supportive policies, aimed at enhancing India’s global competitiveness and driving consumer demand.
Strengthening Manufacturing-Led Growth
A consistent narrative among industry executives is the critical need for sustained government backing for domestic manufacturing. This includes the continuation of schemes like the Production Linked Incentive (PLI) and the Electronics Component Manufacturing Scheme (ECMS). Tadashi Chiba, Managing Director & CEO of Panasonic Life Solutions India, emphasizes that these initiatives, paired with robust investments in infrastructure and research and development, are key to bolstering India’s manufacturing landscape.
Similarly, Ashok Rajpal, Managing Director of Ambrane India, anticipates a continued push toward building in-house manufacturing capabilities. He advocates for policy support that focuses on enhancing domestic production facilities and reinforcing the ecosystem supporting the electronics value chain.
Rationalising Duties and Addressing Cost Structures
To enhance affordability and global competitiveness, industry leaders are calling for the rationalisation of duties on essential components such as semiconductors and memory chips. Chiba notes that this would significantly improve the cost structure of locally manufactured appliances, making them more competitive. Rajesh Sethi, Group CFO of Lava, highlights that correcting cost structures through component-linked incentives will not only increase domestic value addition but also build resilient supply chains—particularly crucial in the current context of global cost inflation.
Simplifying Compliance for Startups and MSMEs
Bureaucratic red tape remains a major hurdle, particularly for startups and Micro, Small, and Medium Enterprises (MSMEs). Nitin Lahoti, Founder & Director of Mobisoft Infotech, argues for a unified digital compliance platform that would ease the burden of paperwork and bureaucratic complexities. He suggests a national compliance portal that consolidates regulations into a single accessible system, allowing entrepreneurs to focus more on innovation rather than administrative tasks.
Focusing on AI, Innovation, and Disciplined Tech Spending
As Artificial Intelligence (AI) emerges as a driver of productivity, executives are looking for budget measures that prioritize meaningful, outcome-oriented investments. Niranjan Chintam, Executive Chairman of Kellton Technologies, underscores the importance of disciplined tech spending, emphasizing the need for investments that are secure-by-design and scalable.
Madhav Sheth, CEO of Ai+ Smartphone, calls for deeper incentives to foster manufacturing of essential components domestically, alongside backing for research, development, and intellectual property creation in system design. Meanwhile, Anand Mahurkar, CEO of Findability Sciences, stresses that India’s success in AI depends not just on intent but on execution at scale, requiring predictable access to data and computation.
Reducing Import Dependence and Building Resilient Supply Chains
With geopolitical tensions heightening, there is a notable focus on localization to minimize reliance on imports. Chiba has pointed out that enhanced support for local component manufacturing, alongside targeted tariff reforms, can significantly strengthen India’s integration into global value chains. Continuous policy backing for electronic components, as echoed by Sethi, is critical to reducing import dependence and building a robust domestic electronics manufacturing ecosystem.
Rajpal further stresses the urgency of addressing import dependence, particularly from specific countries, to safeguard local industries amid global trade uncertainties.
Deeper Localisation for a Resilient Electronics Ecosystem
The trajectory of India’s electronics manufacturing over the past decade has been methodical, transitioning from finished-product duties to more comprehensive PLIs. As India steps into the next growth phase, executives within the industry, like Sanjeev Agarwal of Lava, are advocating for deeper localization. He believes that strengthening the domestic ecosystem and reducing reliance on imports are essential for the industry’s next phase of growth, which will focus on exports and enhanced global competitiveness.
This year’s Union Budget comes at a pivotal moment for India, and the stakes are high. Policymakers, entrepreneurs, and the general populace will be watching closely as expectations unfold, with hopes pinned on transformative reforms that can drive the nation’s technological and economic growth narrative forward.
