It’s no different this year at the ceremony held on Tuesday (Jan 27), helmed by Finance Minister Nirmala Sitharaman and marking the start of the lock-in period ahead of the Budget to be unveiled this Sunday.
When they emerge, all attention in India and globally will be on the Bahi-Khata – the red cloth ledger that symbolises the Union Budget – that Minister Sitharaman will be seen clutching as she enters India’s Parliament to deliver her annual address.
India’s Union Budget is the country’s financial blueprint for the year from April 1, 2026 to March 31, 2027, and is closely watched by global stock markets, investors and policymakers.
India is the world’s fourth-largest economy, with gross domestic product estimated to reach US$4.51 trillion this year, according to International Monetary Fund data.
Total expenditure under the Union Budget 2025 stood at 50.65 trillion rupees (US$551 billion), according to Indian government data.
Last year’s budget emphasised innovation and entrepreneurship – announcing measures spanning artificial intelligence, deep tech research, the semiconductor and electronics ecosystem, and credit access for micro, small and medium-sized enterprises (MSMEs).
This year, the challenge lies in implementation of those measures and new ones to come, analysts and business leaders tell CNA.
“India now stands at an inflection point. Budget 2025 signalled intent. Budget 2026 must deliver action – not just through new initiatives, but by making existing mechanisms frictionless, founder-first, and ready for deployment,” said Amit Chand, founder of early-stage venture capital fund BYT Capital.
From deep tech innovation and artificial intelligence to MSME financing and electric vehicle (EV) manufacturing, stakeholders said the coming Budget must convert intent into impact.
Here are four key things analysts and tech business leaders are watching for in this year’s budget:
DEEP TECH AND R&D INCENTIVES
While the tech sector welcomes the intent behind funds like the Research, Development, and Innovation (RDI) fund and the Deep Tech Fund of Funds announced in last year’s budget, “the real test lies in execution – particularly in speed, clarity of access, and seamless coordination across ministries”, said Chand.
The RDI Fund, worth about 1 trillion rupees (US$12 billion), was launched in November 2025. The six-year programme offers patient funding – including low-interest loans or equity support – for areas such as artificial intelligence (AI), quantum computing and clean energy, where private investors are often cautious due to long development timelines.
The fund is aimed at encouraging companies to invest in cutting-edge, but risky technologies.
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