Budget 2026: Fiscal Discipline And Sectoral Support, But Indigenous Innovation Awaits Its Turn

The Budget does what responsible governments should do: it prioritises macroeconomic stability and addresses structural inefficiencies without resorting to populist giveaways. FM Nirmala Sitharaman has delivered a credible Budget that projects nominal GDP growth of 7-7.5% for FY27. For the technology ecosystem, there are tangible wins, particularly around IT services, manufacturing, and procedural simplifications. But several critical priorities remain unaddressed. Fiscal Discipline Creates Room For Private Capital The Budget’s greatest achievement is what it avoids: fiscal expansion in favour of political optics. The Government has raised gross tax collections from INR 33.42 Lakh Cr to INR 35.33 Lakh Cr despite larger-than-budgeted tax reliefs. By maintaining expenditure discipline and achieving revenue buoyancy through compliance improvements rather than rate increases, the government signals that India’s growth story will compound on structural reforms, not just short-term stimulus. This matters for startups. The Economic Survey’s recommendation to lower the cost of capital through diversified financing and reduced taxes on debt instruments has found partial expression here. Fiscal consolidation and discipline reduces sovereign borrowing pressure, improves bond market conditions, and creates space for private-sector investment. That space is critical for affordable debt and alternative credit markets, which growth-stage companies desperately need. IT Services Finally Gets…  ​Read MoreInc42 Media