Technology and Digital Economy Expected to See Continued Support in Union Budget

Technology and the digital economy have become integral to India’s growth model as the country approaches the Union Budget on February 1. In the previous Union Budget (FY2025–26), the government allocated approximately ₹16,549 crore to the Ministry of Electronics and Information Technology (MeitY), underlining continued emphasis on digital infrastructure, electronics manufacturing, and e-governance.

A significant share of this allocation supported flagship digital initiatives such as Digital India, expansion of digital public infrastructure (DPI) including Aadhaar, UPI, and DigiLocker, and incentives for electronics manufacturing. India’s digital payments ecosystem has expanded rapidly, with UPI transactions crossing over 12 billion per month, reinforcing the role of technology in financial inclusion and formalisation of the economy.

Expectation: As Budget 2026 approaches, policymakers and industry stakeholders expect continuity in digital policy support, with focus on strengthening digital infrastructure, cybersecurity, and last-mile connectivity. Rather than major new scheme announcements, the emphasis is expected to remain on scaling and securing existing platforms.

Economic Context: The digital economy is increasingly contributing to productivity gains across sectors such as banking, retail, healthcare, and governance. India’s technology sector also plays a key role in exports and employment, particularly in IT services and electronics manufacturing.

Prediction: While large jumps in headline allocations may be limited by fiscal priorities, targeted spending on semiconductor ecosystems, electronics manufacturing, data centres, and digital skilling is expected. Support for startups and innovation-led enterprises may also continue through policy facilitation rather than direct subsidies.

National Outlook and Hope: Sustained investment in technology and the digital economy is viewed as critical for competitiveness, efficiency, and inclusion. Continued policy stability could help India strengthen its position as a global digital leader, support innovation, and drive long-term economic growth.