- Published on January 22, 2026
- In AI Startups
Compute Credit, R&D, Capital: Inside Startups’ Budget 2026 Wishlist
Ahead of Budget 2026, Indian startups hope for R&D tax incentives and affordable access to computing.
Image by Nalini Nirad
- By Smruthi Nadig
As finance minister Nirmala Sitharaman prepares to present the Union Budget on February 1, there’s an unusual mix of urgency and maturity bubbling in the Indian startup ecosystem.
The conversation has moved decisively beyond tax holidays or symbolic incentives. Instead, founders and investors are calling for structural interventions that determine whether India retains ownership of innovation or continues to lose value as startups scale.
Entrepreneurs and investors tell AIM that while personal tax relief and consumption-led growth will dominate popular attention, the real test of Budget 2026 lies in how it treats technology, manufacturing, and innovation as long-term economic infrastructure.
From Innovation to Infrastructure
Several founders argue that India must rethink how it categorises emerging technologies, especially AI. “As India stands at the cusp of an AI revolution, the upcoming Union Budget must pivot from viewing AI as a mere software vertical to treat
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Smruthi Nadig
Smruthi is a technology journalist focused on AI and the systems that shape its impact on society. They report on AI startups and funding trends, policy decisions that influence innovation, and the digital infrastructure that strengthens the AI economy.
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