India begins FY27 at a very interesting time in its technology trajectory!

As a global leader in IT services, India continues to benefit from accelerating cloud adoption and an AI ecosystem that is steadily moving from proof-of-concept to production-scale deployment. At the same time, intensifying competition from other digital economies, rising data localisation requirements, and a fluid talent market are forcing a rethink of what it will take to sustain India’s technology leadership.

Against this backdrop, the technology and AI industry was looking for more definitive announcements in the Union Budget 2026. On AI budgets, cybersecurity allocations, and measures to accelerate the adoption of new technologies. However, the Budget took a more long-term view.

Here’s our quick take on what Union Budget 2026 signals for India’s technology and AI ecosystem.