Industry Leaders Hail Union Budget 2026 for Boosting Digital and Infrastructure-Led Growth- Key Highlights
- Digital ecosystem push: Increased capex and policy support are expected to drive demand for fibre networks, edge data centres, cloud-ready infrastructure, and AI-enabled solutions.
- Data centre incentives: Tax reliefs for data centres, combined with urban and regional infrastructure investments, are seen as critical to building integrated digital ecosystems.
- Long-term impact: Analysts believe the measures will strengthen connectivity, smart networks, and scalable infrastructure, supporting India’s ambition of a USD 5 trillion+ digital economy.
The Union Budget 2026 sets a forward-looking agenda for India’s growth, reinforcing development momentum while ensuring continuity in creating future-ready digital and physical infrastructure. By emphasizing the highest ever capital expenditure, the government has extended the message through the creation of more logistics and industrial corridors, and support for Tier II and Tier III cities, that the resilient, scalable, and technology enabled infrastructure will be the core of India's economic strategy.
For the digital ecosystems, such government actions will likely lead to an increased demand for fibre networks, edge data centres, cloud, ready infrastructure, and AI enabled solutions, thereby helping India sustain its growth in the digital era.
Leading figures in the industry consider the Budget as a transformative lever for India's digital economy. One of the measures in the Budget is tax reliefs for data centres combined with investment in the urban and regional infrastructure which not only help the physical environment to grow but also encourage the creation of digital ecosystems that are integrated.
Analysts regard these steps as vital to the establishment of dependable connectivity, smart networks, and infrastructure that is ready for the future and capable of supporting India's path to a digital economy of more than USD 5 trillion, which will be beneficial to investors, enterprises, and citizens.
Mr. Kunal Bajaj, CEO & Co-Founder, CloudExtel, commented, “Union Budget 2026 sends a clear and timely signal that infrastructure-led growth, including digital infrastructure, remains central to India’s economic strategy. The record capital expenditure allocation and the continued emphasis on large-scale infrastructure development underscore the government’s commitment to building long-term economic capacity.
For the telecom and connectivity ecosystem, the Budget’s focus on City Economic Regions, expansion of logistics and industrial corridors, and accelerated development of Tier II and Tier III cities is especially significant. These initiatives are expected to drive sustained demand for high-quality fibre networks, edge-ready digital infrastructure, and scalable, carrier-neutral facilities that can support growing enterprise and consumer data needs."
The broader policy push towards technology-enabled growth by spanning digital public infrastructure, AI adoption, and advanced manufacturing further strengthens the case for increased investment in cloud-ready and data-driven ecosystems. As economic activity becomes more distributed beyond major metros, proximity-led infrastructure such as edge data centres and low-latency networks will become increasingly critical.
"As India progresses towards a USD 5-trillion-plus digital economy, the Budget reinforces an important reality: reliable connectivity, scalable data infrastructure, and resilient networks are no longer optional as they are foundational utilities. At CloudExtel, we view this Budget as a catalyst for deeper collaboration across telecom operators, cloud providers, and enterprise ecosystems to future-proof India’s digital growth, ” he further added.
Mr. Ramarathinam Sellaratnam, Group CEO & Managing Director, iBUS Networks, said, “Union Budget 2026 reflects a clear, future-oriented vision for India’s digital economy and how the country is approaching connectivity not just as infrastructure, but as an intelligent, AI-enabled digital ecosystem. The proposed tax holiday for data centres is a particularly significant step, as data infrastructure forms the backbone of every digital service. This move positions India strongly to emerge as a global hub for data centres, serving both domestic and international demand.
Digital infrastructure is fundamental to economic growth, and this Budget rightly recognises that we are all stakeholders in this digital ecosystem. The parallel push on physical infrastructure, especially roads and urban development, creates a reinforcing impact on digital growth. As transport-oriented development expands, it unlocks new corridors for digital connectivity.
"The emphasis on urban as well as Tier II and Tier III infrastructure development and enterprise digitisation will drive greater demand for integrated fibre, in-building digital infrastructure, and intelligent network management. At iBUS Networks, we view this Budget as distinctly futuristic, accelerating the convergence of physical and digital infrastructure. Together, these measures will enable India to build resilient, scalable, and intelligent connectivity foundations that support long-term economic growth and global digital leadership, ” he added.
Mr. Pankaj Agrawal, Chairman, Shaurrya Teleservices, highlighted, “Union Budget 2026 provides a strong impetus to India’s digital infrastructure and telecom ecosystem through its sustained capital expenditure push and a clear focus on AI, cloud services, and large-scale data centre development. The reinforcement of the IndiaAI Mission, multilingual digital platforms for farmers, and technology-driven support for MSMEs reflects how innovation is being embedded across sectors to drive productivity, inclusion, and enterprise growth. The long-term tax holiday for global cloud providers and data centre operators is a landmark move that positions India as a future global digital hub, attracting investment while strengthening domestic digital capabilities. By prioritising infrastructure-led growth, the Budget recognises the critical role telecom networks play in enabling digital services, MSME digitisation, and enterprise transformation. The focus on Tier II and III cities will further accelerate demand for robust, future-ready connectivity. At Shaurrya Teleservices, we see Budget 2026 as a strong step toward building a resilient digital backbone for India’s expanding digital economy.”
