India’s Union Budget 2026 is shaping up as a defining moment for the nation’s digital future. Finance Minister Nirmala Sitharaman is preparing a fiscal roadmap that goes beyond numbers. It aims to create a digital backbone to drive India toward the vision of Viksit Bharat 2047.
The government wants digital infrastructure to be more than connectivity. It should be a strategic platform for growth, innovation, and public services. Experts say this could make India a global tech leader.
Focus on Data and AI Infrastructure#
A key theme in discussions ahead of the Budget is the role of data infrastructure. India has built a foundation through Digital India initiatives and platforms such as the National Data and Analytics Platform. But data still exists in silos, limiting its utility for advanced technologies like artificial intelligence (AI).
Government agencies have highlighted the dramatic growth of digital connectivity in recent years. Internet connections surged from roughly 25 crore in 2014 to nearly 97 crore by June 2024. Broadband subscribers jumped from 6.1 crore to nearly 95 crore in the same period. 4G now reaches over 6.15 lakh villages.
Experts argue that the next stage must focus on interoperable datasets and scalable compute capacity. This is essential for AI solutions in healthcare, agriculture, education and governance. Analysts at Grant Thornton Bharat said the budget could pivot India from digital adoption to digital leadership by institutionalising long-term data and compute strategies.
Industry and Telecom Sector Expectations#
Industry bodies have called for accelerated investments in both digital and physical infrastructure. The Confederation of Indian Industry (CII) urged the government to expand infrastructure funding, including digital systems and research and development (R&D), to sustain economic growth.
Telecom and digital infrastructure firms expect broader policy support. They say cybersecurity must be treated as a fundamental national priority as digital services expand across sectors from banking to healthcare. Tele analysts say the budget offers an opportunity to make cyber resilience a core pillar of India’s digital economy.
There are also calls to recognise data centres as essential infrastructure, akin to roads and ports. Industry leaders say this shift could speed approvals and attract long-term investment.
Government Initiatives and Public Platforms#
Public digital infrastructure has already played a role in financial inclusion. Government data shows platforms like DigiLocker have enabled retrieval and secure storage of financial documents, boosting access and transparency.
The Budget 2026 is expected to expand such platforms and link them with services that support millions of users. Proponents say this will cut friction in citizen-government interactions and improve public service delivery.
What’s at Stake#
The choices in Budget 2026 will shape India’s digital ecosystem for years to come. If the government backs interoperable data systems, strong cybersecurity, and strategic funding, analysts say India can lead innovation domestically and globally.
The Budget session will begin on January 28, with the full Budget scheduled for February 1. Stakeholders across industry and government are watching closely.
Clear Cut Research Desk
New Delhi, UPDATED: Dec 23, 2025 04:00 IST
Written By: Ayushman Meena
