CE DESK 
Explore how India’s Union Budget 2026 empowers startups with INR 10,000 Cr funding and deep tech via Semiconductor Mission 2.0, driving self-reliance in AI, biotech, and quantum technologies.
India’s Union Budget 2026-27 marks a pivotal shift toward nurturing homegrown innovation, with robust measures for startups and deep tech sectors amid global funding uncertainties. Finance Minister Nirmala Sitharaman announced INR 10,000 crore in dedicated equity funding for early-stage startups and tech-focused MSMEs, directly tackling the ongoing funding winter that has strained entrepreneurs since 2022. This infusion, complemented by a INR 2,000 crore top-up to the Self-Reliant India Fund, aims to bridge capital gaps and accelerate scaling for high-potential ventures in fintech, EVs, and green energy.
Tax reforms further sweeten the deal, offering holidays, enhanced R&D deductions up to 200%, and simplified compliance to ease cash flow burdens on bootstrapped teams. Low-interest credit lines and faster invoice settlements via digital platforms will empower MSMEs, which form the backbone of India’s startup ecosystem, to invest in growth without liquidity crunches. FDI liberalisation shines brightest, permitting 100% automatic route investments in fintech and e-commerce, alongside raised manufacturing caps, inviting global VCs to pour resources into Indian innovation hubs.
For deep tech, the budget supercharges ambitions with INR 40,000 crore for India Semiconductor Mission 2.0, spanning components, equipment, IP creation, and skill training to forge a sovereign supply chain. The Biopharma SHAKTI scheme injects INR 10,000 crore into biologics manufacturing, clinical trials, and regulatory frameworks, positioning biotech as a global contender. Synergies with the AI Mission, National Quantum Mission, and ANRF’s RDI funding catalyse breakthroughs in AI, quantum computing, and advanced materials.
Data centre tax holidays and GPU infrastructure bolster India’s AI supremacy, while sector-specific incentives in biotech and clean tech amplify deep tech scalability. Industry voices, from Nasscom to deep tech founders, hail these as game-changers for job creation and export-led growth. As startups leverage this ecosystem, Budget 2026 cements India’s trajectory as a deep tech powerhouse, blending policy firepower with entrepreneurial grit for a $1 trillion digital economy by 2030.
