The support from the government for emerging technologies through initiatives like the AI mission, National Quantum Mission, Anusandhan National Research Fund, and Research and Innovation Fund is expected to significantly benefit Indian higher education institutions that are shaping the country’s future entrepreneurs, industry leaders stated on Monday.
The Union Budget 2026 indicates a clear transition in India’s approach to technology, moving from simple adoption to the development of strategic capabilities.
“The focus on AI, semiconductors, cloud computing, and data infrastructure shows a solid recognition that excelling in the digital economy begins with having strong foundational elements. Enhancing the India AI Mission offers a unified framework to speed up AI research, implementation, and the ethical management of AI across various sectors,” remarked CP Gurnani, Co-Founder and Vice Chairman of AIONOS.
Crucially, this agenda goes beyond a limited technological focus. By integrating AI funding with skill development, workforce preparedness, and empowerment of MSMEs, the Budget acknowledges that growth, inclusivity, and competitiveness must advance in tandem, he stated.
The emphasis on incorporating technology across various sectors aims to support farmers directly, increase female participation in STEM fields, and provide youth with the skills needed to seize emerging opportunities, noted Chocko Valliappa, Vice Chairman of Sona College of Technology.
“The budget allocation of Rs 139,289 crore for the education sector is an increase of 14.2 percent compared to the revised estimate of Rs 121,949 crore for 2025-26. According to the revised estimate, the actual expenditure on education fell short by 5 percent relative to the budgeted figure,” he mentioned.
The budget proposal to establish five university townships near key industrial and logistics corridors, featuring a variety of universities, colleges, research institutions, and skill centers, is a positive initiative.
“States such as Tamil Nadu, Karnataka, and Maharashtra, which have a robust manufacturing sector and numerous higher education institutions, could easily host one of these university townships,” Valliappa commented.
As per industry experts, the Union Budget conveys a strong message that India’s upcoming growth phase will be driven by AI-focused digital capabilities, extensive skill development, and competitive technology services on a global scale.
“The suggested Education to Employment and Enterprise framework is a timely initiative aimed at closing the gap between curriculum and industry, especially in emerging fields like AI, data engineering, and digital platforms, where the demand for skilled professionals is exceeding the availability of prepared talent,” stated Sachin Alug, CEO of NLB Services.
The emphasis on tier 2 and tier 3 areas as Digital Economy Zones enhances India’s Global Capability Center ecosystem by tapping into new talent sources and fostering distributed, resilient operating models outside of metropolitan areas, Alug highlighted.
The creation of a unified IT Services framework with more defined tax regulations and safe harbour guidelines is also crucial, as it offers businesses long-term certainty, experts expressed.