India’s Union Budget for 2026–27 has drawn a largely positive response from industry leaders, who say the government is signalling a decisive shift towards supply-chain resilience, technology-driven growth and preventive healthcare.
Sanjay Choudhari, Chairman of SBL Energy Limited, said the Budget reflects a strategic response to rising global trade tensions and vulnerabilities in critical supply chains. A key announcement—the creation of dedicated rare earth corridors in mineral-rich states—has been widely welcomed by the mining and energy sectors.
According to Mr Choudhari, the focus on downstream processing, research and manufacturing addresses one of India’s most significant strategic dependencies: access to rare earth materials, currently dominated by a handful of global players. “By incentivising exploration and commercial-scale extraction, the Budget strengthens domestic capabilities and integrates mining with downstream industries,” he said, adding that this could significantly boost the sector.
The Budget’s emphasis on strengthening manufacturing through integrated industrial ecosystems, including the development of dedicated chemical parks, also marks a departure from fragmented capacity expansion. Industry leaders say these measures could help reduce import dependence and position India as a more reliable participant in global manufacturing networks.
AI and digital infrastructure take centre stage
For technology and services companies, the recognition of data centres as critical national infrastructure has emerged as a major highlight.
Akshay Chhabra, Chairman and Managing Director of 1Point1 Solutions Limited, said the move signals that India is moving beyond AI adoption to making artificial intelligence a core driver of economic growth. “The proposed tax holiday until 2047 for global cloud service providers sends a strong signal to hyperscalers and long-term investors,” he said.
Mr Chhabra noted that the measure could accelerate large-scale digital infrastructure development and strengthen India’s role in the global cloud, AI and digital services value chain. For AI-first services firms, he said, expanded cloud capacity would also improve talent readiness and ecosystem maturity. “AI is no longer a future roadmap—it is today’s operating reality,” he added.
Healthcare and biopharma in focus
The healthcare sector has also found reasons for optimism. Dr Sajeev Nair, Founder and Chairman of Vieroots, said the Budget addresses the growing need for affordable treatment of chronic diseases such as diabetes and cancer.
Initiatives like BioPharma Shakti, alongside investments in biopharma manufacturing and stronger regulatory institutions such as the CDSCO, indicate that biologic medicines are becoming central to preventive and longevity-focused healthcare, he said. Faster approvals and deeper scientific expertise could also help India emerge as a global hub for affordable, high-quality biologics.
The Budget’s push to develop medical value tourism through regional healthcare hubs is expected to enhance India’s global healthcare competitiveness while upgrading domestic infrastructure.
As a company working at the intersection of personalised nutrition and wellness, Vieroots said it sees strong alignment with the government’s vision of preventive healthcare aimed at improving healthspan and quality of life.
