Archives February 2026

The trade facilitation measures announced in the Union Budget represent a landmark shift in India’s approach to global commerce. By placing systemic trust and digital integration at the core of reforms, the government has laid a strong foundation for a more resilient, agile, and globally competitive export-import ecosystem.

A key highlight is the transition towards a fully digital, trust-based customs framework. The adoption of AI-enabled scanning, faster clearances, and more predictable regulatory rulings goes beyond improving efficiency—it enhances transparency, reduces uncertainty, and gives businesses the confidence needed for long-term investment and operational planning.

Several measures directly address long-standing challenges in cross-border trade. The removal of value caps on courier exports and the simplification of duty structures significantly ease compliance for MSMEs, e-commerce exporters, and individuals, who have long faced confusion around varied duty rates. These reforms will help expand India’s global trade footprint by removing procedural and value-related constraints.

The introduction of seamless export returns and “Return-to-Origin” processes further reduces risk, cost, and congestion in international trade. This improves shipper confidence, accelerates resolution in non-clearance scenarios, and creates a more business-friendly trading environment.

Equally impactful is the integration of SEZ clearances through ECCS, ICEGATE, and ICES, which strengthens India’s digital trade infrastructure and enables Special Economic Zones to operate in a more frictionless and globally competitive manner. This also sets the stage for streamlined clearances across EOU, IGCRD, MOOWR, and similar schemes via courier channels.

Finally, the strengthening of the Authorized Economic Operator (AEO) framework through a 30-day deferred duty payment option is a significant boost to working capital efficiency and provides a strong incentive for higher compliance standards.

Taken together, these measures signal a decisive move towards a modern, trust-based, and technology-driven trade ecosystem—reinforcing India’s ambition to emerge as a preferred global trade and logistics hub.

By:  Shiv Parekh, Founder and CEO, hBits

“The Union Budget 2026 sends a positive signal for India’s investment ecosystem. The 12.2 trillion rupee allocation for infrastructure and introducing a dedicated REITs for monetising CPSE assets can help unlock private capital and improve market liquidity. This opens up more stable, yield-focused investment opportunities for both institutional and retail investors.

At hBits, we see this as an important step toward making real estate and infrastructure investing more accessible and transparent.

New Delhi, Feb 1: Today Indian Finance Minister Nirmala Sitharaman presented Govt. of India’s budget for year 2026-27 in the Indian Parliament.

This budget has proposed to provide a tax holiday up to 2047 to any foreign company who provides services to any part of the world outside India by procuring data centre services in India. In addition, it is also proposed to provide a safe harbour of 15% to the resident entity providing data centre services to a related foreign company.

Sumant Parimal, Chief Analyst of 5 Jewels Research (5JR) at Innogress has hailed this and other provisions under the Union Budget of Govt. of India, and said that tax holiday for the Indian Data Centers in budget Is a core sector moment for AI.

Giving his analyst outlook on Indian Budget 2026 presented today in the Indian Parliament by FM Nirmala Sitharaman, Chief Analyst of 5 Jewel Research at Innogress Mr Sumant Parimal, has said

“During year 2022 pre-budget outlook I emphasized need for according strategic sector status to AI (Artificial Intelligence) in line with core sectors like Electricity, Coal, Steel, Gas, Telecommunication, now I am happy to see that Govt. of India has understood this and has provisioned tax holidays till 2047 for Data Centers getting setup in India for the global markets. I see this tax holiday provisioned in this year budget for Indian data centers as equivalent to according a strategic and core sector status to AI, which gets hosted and accesses through these data centers, in line with my pre-budget outlook for year 2022. This provision of Govt. of India to waive off tax on Data Centers for international markets is not only going to boost Big Tech.’s & MNC’s Data Centers footprints in India but shall also boost attractiveness of domestic firm’s data centers capacities in the pipeline for receiving foreign collaborations and investments interests” said Mr Sumant Parimal.

“Further this tax holiday provision is going to expand data center capacity additions in India, which in turn going to trigger semiconductors, electronics and other IT-engineering related components demands in India, and I am happy to see that this semiconductor-electronics demand trigger has been proactively addressed by Govt. Of India by announcing India Semiconductor Mission (ISM) 2.0 with a budgetary outlay of Rs. 1000 Cr and additional budgetary outlay of Rs. 40,000 Cr for Electronics Components Manufacturing Scheme (ECMS)in FY 2026-27” Mr Sumant Parimal said.

Mr Sumant Parimal also hailed other provisions of the budget which includes ‘Bharat-VISTAAR’-a multilingual AI tool to enhance farm productivity, improve farmer decision making and reduce risk through customized advisory support, and to support the Indian Institute of Creative Technologies, Mumbai in setting up AVGC Content Creator AI Labs in 15,000 secondary schools and 500 colleges in furtherance of India’s Orange economy and termed these provisions of the budget a right step towards achieving “AI For ALL” for which he is emphasizing since 2019.

Chief Analyst of 5 Jewels Research also hailed the Indian government plans to launch a Customs Integrated System (CIS) within two years to streamline all customs operations, as announced by Finance Minister Nirmala Sitharaman during the Union Budget 2026-27 and termed it as most pressing AI-Technology led business transformation in governance for ease of doing businesses by reducing bureaucracy, which is a big relief to Enterprises, SMEs and R&D labs which are importing critical equipment, devices and components from overseas under extreme time and budgetary constraints. Mr. Sumant Parimal termed this ‘CIS’ initiative as catalyst to integrate India based deep tech. GCCs (Global Capability Centers) / research centers in the Global supply chain because customs clearances were a big bottleneck in the inbound and outbound supply chains at the Indian ports.

Roby John, CEO & Co-founder of SuperGaming, commented on the Union Budget 2026–27

“At SuperGaming, we engage closely with students and young creators, witnessing their immense talent firsthand. What India needed was access, tools, and belief in our potential to develop original IP domestically. The Union Budget 2026–27 is a strong step in that direction.

By establishing AVGC Content Creator Labs in 15,000 schools and 500 colleges, in partnership with IICT, the government is building a robust pipeline for the next generation of game developers, artists, and storytellers. This initiative is crucial because India’s gaming and digital entertainment future will be driven by original Indian IP, not just consumption.

Formal recognition of the AVGC-XR sector provides long-term stability for the industry, empowering studios like ours to invest with confidence. These policy measures are exactly what India needs to transition from being a consumption-driven market to a global creator of high-quality games and digital entertainment.”

Mr. Chandra Kishore Thakur, Global CEO, Sterling and Wilson Renewable Energy Group

“We feel that this budget has rightly prioritized India’s energy security, especially the increasing role of renewables towards fulfilling this objective over the long term. 

The relief in customs duty for the import of sodium antimonate used in the manufacture of solar glass is a step in the right direction. This move will reduce input costs for solar panel manufacturers and thereby augment domestic solar equipment production, giving an impetus to the entire sector in terms of atmanirbharta.

The extending of basic customs duty exemption for capital goods used for manufacturing Lithium-Ion Cells for batteries, and to those used for manufacturing Lithium-Ion Cells for battery energy storage systems (BESS) is also a welcome decision. We must remember that BESS significantly enhances the viability of solar power by addressing its intermittency and enabling efficient energy management. BESS stores excess solar generation for use during low-production periods, thereby augmenting overall system reliability and economics in the solar industry.

With these new measures, we are certain that renewable energy will play a vital role in India’s sustainable development, powering economic growth while reducing dependence on imported fossil fuels.”

Mr. Rakesh Markhedkar, CMD, Vikran Engineering Limited

“We welcome the Union Budget 2026–27 and appreciate the government’s continued focus on infrastructure-led growth across physical and digital assets. The policy direction and long-term visibility provided in this Budget create a strong foundation for sustained investment in the infrastructure sector.

The 20-year tax holiday for data centres and cloud infrastructure, along with measures such as safe harbour norms for IT and data centre services, is a significant step that will accelerate investments in large-scale data centre development across the country. This is expected to drive substantial demand for EPC capabilities in power, cooling, civil, and integrated infrastructure, creating meaningful opportunities for companies like ours.

At the same time, initiatives such as the Infrastructure Risk Guarantee Fund, new dedicated freight corridors connecting the East and West, the Purvodaya integrated East Coast industrial corridor, seven high-speed rail corridors, the India Semiconductor Mission 2.0, revival of legacy industrial clusters, and the scheme for enhancement of construction and infrastructure equipment collectively expand the execution landscape for mid-sized EPC players. Vikran Engineering sees this Budget as an opportunity to actively participate in building both India’s physical infrastructure and its next-generation digital backbone.”

Mr. Shubham Jain, Group CEO, Infomerics Valuation and Rating Ltd.

“A meaningful step towards deepening India’s corporate and municipal bond markets by proposing a market-making framework, introducing new derivative instruments, and strengthening incentives for large municipal bond issuances while continuing support under the AMRUT scheme. These measures are expected to improve secondary market liquidity, broaden investor participation, and enhance price discovery, particularly for long-tenor and sub-sovereign issuances. Importantly, the Government’s continued emphasis on fiscal prudence and calibrated borrowing is reassuring for debt markets, as it helps contain crowding-out risks and anchors investor confidence. Together, these initiatives should encourage greater bond market participation by India Inc. and urban local bodies, while reinforcing the role of bonds as a sustainable and diversified funding avenue.”

Artificial Intelligence – Bruce Keith, CEO & Co-Founder, InvestorAi
“The focus on fiscal discipline and tax harmonisation is welcome. The emphasis on education in a rapidly AI-driven world makes sense. However, the increase in Securities Transaction Tax (STT) on futures and options—150% and 50%, respectively—may inadvertently reduce liquidity, as most F&O participants incur losses. Rather than disincentivising trading, education and AI-enabled guidance could be a better lever to address this challenge.”

Venture Capital Perspective – Ankur Mittal, Co-Founder, Inflection Point Ventures
“India’s service-led economy stands to benefit from AI-driven growth. The government’s focus on building strong AI talent is strategic, helping retain domestic talent, attract global tech investment, and strengthen the startup ecosystem. Startups like CTPL can play a pivotal role in executing this vision.”

Venture Capital Perspective – Anil Joshi, Managing Partner, Unicorn India Ventures
“Indian semiconductor manufacturing is nascent and needs policy support. ISM 2.0 and the ₹40,000 crore allocation for electronic components will strengthen the supply chain, enabling India to become self-reliant. Initiatives like Bharat Vistaar will enhance agriculture productivity using real-time AI and satellite data. The announcement of four telescope centres will bolster India’s self-reliant space research capabilities.”

Semiconductor Industry – Manu Iyer, General Partner & Co-Founder, Bluehill.VC
“The launch of India Semiconductor Mission 2.0 is transformative for technology and manufacturing. By supporting domestic semiconductor equipment, materials, and design, ISM 2.0 positions India as a globally competitive hub. Coupled with rare earth corridors across mineral-rich states, these measures strengthen supply chains for electronics, defense, and clean energy, driving high-skilled employment and innovation.”

Legal Tech – Hitesh Jirawla, Founder & CEO, Cubictree
“The government’s push to digitise courts, combined with AI innovation funds exceeding ₹10,000 crore, marks a quantum leap for Legal AI in India. This initiative addresses the ‘Iron Triangle’ of legal technology—cost, speed, and accuracy—establishing Legal AI as critical infrastructure for a developed India.”

Cybersecurity – Pankit Desai, Co-Founder & CEO, Sequretek
“Union Budget 2026 positions India’s digital economy as a core growth driver. The increase in safe harbour thresholds for IT/ITES companies—₹2,000 crore for domestic and ₹300 crore for overseas group entities—reduces tax disputes and compliance risks. Tax holidays for foreign cloud data centres enhance technological sovereignty. The ₹10,000 crore SME Growth Fund empowers adoption of emerging technologies, supporting India’s Make in India, Make for the World vision.”

The Union Budget 2026–27 lays a robust foundation for India to emerge as a global tech powerhouse, with focused investments in AI, semiconductors, cybersecurity, digital infrastructure, and skill development. Coupled with support for startups, SMEs, and high-tech manufacturing, these measures aim to foster innovation, build a resilient ecosystem, and strengthen India’s position in global value chains.

Mumbai, Feb 01: Speaking on the budget announcements, Mr Shailesh Chandra, President, SIAM and MD & CEO, Tata Motors Passenger Vehicles Ltd, said,

“We welcome the Union Budget 2026–27, which continues to focus on long-term, sustained economic growth with a strong emphasis on manufacturing, infrastructure including freight corridors & waterways and fiscal prudence. The decision to raise the capital expenditure target to Rs 12.2 lakh crore for FY 2026-27 from Rs 11.2 lakh crore in the current year will provide a strong impetus to demand creation and industrial activity, including the Automobile sector.

Enhanced support for electronic components manufacturing, setting up dedicated corridors for mining and processing of rare earth, along with initiatives to establish high-tech tool rooms and supporting container manufacturing, will develop supply chain resilience and help in streamlining exports. The allocation of 4,000 e-buses for the Purvodaya States will accelerate the transition toward sustainable public mobility solutions.

Continued exemption of Basic Customs Duty on Capital Goods used for manufacturing lithium-ion batteries, along with the extension of concessional duty benefits for lithium-ion cells and their parts used in manufacturing batteries for electric and hybrid vehicles for a further two years till March 2028, will enable creation of a robust EV ecosystem in the country.”

By:- Dr. Azad Moopen, Founder & Chairman, Aster DM Healthcare

Today’s Budget lays out a thoughtful and forward-looking blueprint for India’s healthcare ecosystem—one that seamlessly integrates innovation, access, capacity expansion and global competitiveness. The Biopharma Shakti initiative, with an outlay of ₹10,000 crore over five years and a clear focus on strengthening research, manufacturing and regulatory capabilities, will play a pivotal role in accelerating India’s journey towards advanced, affordable and globally benchmarked healthcare solutions. The exemption of basic customs duty on 17 critical cancer drugs is a timely and patient-centric measure that will significantly improve access to life-saving therapies while easing the financial burden on families.

The Budget’s strong emphasis on healthcare infrastructure is equally encouraging. The proposed 50 percent capacity expansion of district hospitals, combined with targeted investments in tertiary care through the expansion of NIMHANS 2.0 in North India and the addition of three new AIIMS facilities, will meaningfully strengthen care delivery across both urban and underserved regions. These measures reinforce the government’s commitment to building a more resilient, inclusive and future-ready public health system.

Importantly, the Budget recognises healthcare as a powerful engine of employment and social impact. The announcement of 1,00,000 Allied Health Professionals (AHPs), alongside the training of 1.5 lakh caregivers, supported by structured skilling initiatives, AI-enabled training pathways and digital health programmes, marks a decisive step towards building a large, skilled and future-ready healthcare workforce. This integrated approach will help support an ageing population, specialised care needs and emerging models of care delivery. Together with the continued push for medical hubs, medical value tourism, and a sharper focus on mental and digital health, these initiatives firmly position India as a globally trusted healthcare destination with sustainable long-term growth potential.