Union Budget 2026-27 Expectations: Focus on Youth Empowerment, Education Reform, Infrastructure, Clean Energy, and Semiconductor Localization
With Finance Minister Nirmala Sitharaman set to present the Union Budget 2026-27 on February 1, 2026, India’s stakeholders are outlining priorities for inclusive growth, demographic dividend harnessing, and self-reliance. The budget arrives at a crucial juncture, emphasizing youth skilling, quality education, digital access, clean energy transition, telecom infrastructure, and strengthening domestic electronics manufacturing amid global supply chain shifts.
Industry leaders highlight the need for targeted investments to leverage India’s young population, bridge educational gaps, accelerate renewable energy and grid enhancements, and reduce import dependence in semiconductors and components.
Empowering India’s Youth and Reducing Entry Barriers for Young Entrepreneurs
Jeel Gandhi, CEO of Under25, underscores the demographic opportunity: “With over 65% of India’s population under 35, the upcoming Union Budget is a pivotal moment for the country’s youth. It presents a critical opportunity to allocate dedicated funds and provide incentives that support early-stage funding, seed capital access, and enable start-ups for young entrepreneurs. We expect a long-term vision of positioning India as a global hub for young talent, where these dedicated allocations will help reduce entry barriers and give a boost to youth-led innovation.”
He further stresses bridging the skills gap: “Most fresh graduates in India face the same challenge – a degree in hand but limited skills in the real world. Supporting structured, paid internships and industry-academia collaboration can significantly ease young Indian’s transition from education to employment. This is essential to leverage India’s demographic dividend for economic growth.”
Gandhi also calls for affordable internet in Tier 2/3 cities to support the creator economy and stronger focus on Gen-Z skills in digital, creative, communication, AI, and new-age tech for long-term employability.
Recalibrating Education for Learning Outcomes and Equity
Niyati Handa, Co-founder & Director of Eklavya, advocates shifting focus from enrollment to quality: “Looking ahead at Budget 2026, there is a bigger expectation that India’s education agenda will be recalibrated. The focus should move beyond enrollment numbers to learning outcomes, strengthening critical thinking, conceptual understanding, and teaching excellence that shape young minds.”
She emphasizes foundational investments: “A substantive increase in the budget for school education is essential, especially at the foundational level. Investments to upgrade teacher training, curriculum modernisation, and age-appropriate learning frameworks have to take place holistically to develop solid academic and cognitive roots for future-ready learners.”
Handa highlights bridging urban-rural divides through digital and hybrid models, continuous teacher upskilling, merit-based scholarships, and aligning education with emerging careers for real-world problem-solving to power India’s knowledge economy and global competitiveness.
Strengthening Infrastructure and Clean Energy Execution
CA Baratam Satyanarayana, CFO and Director of Bondada Group, points to execution certainty in infrastructure and renewables: “As India prepares for Budget 2026, the infrastructure and clean-energy ecosystem is at an inflection point. For EPC players operating across telecom, renewable energy, and emerging storage solutions, the focus now must shift from capacity creation to execution certainty.”
He adds: “We are looking for a budget that strengthens grid infrastructure, accelerates utility-scale renewable deployment, and provides clear policy support for battery energy storage systems, which are critical to balancing intermittent power and improving project bankability. On the telecom side, faster rollout of 5G densification and fiberisation will be key to supporting India’s digital economy. A stable policy framework, faster approvals, and improved access to long-term financing will enable EPC companies to scale efficiently, deliver projects on time, and support the country’s twin goals of energy transition and digital connectivity.”
Boosting Domestic Electronics Manufacturing and Semiconductor Resilience
Mr. Rajesh Sethi, Group Chief Financial Officer of Lava International Limited, addresses cost inflation challenges: “With global memory and semiconductor cost inflation impacting device affordability, the next phase of component-linked incentives and ECMS is critical to correcting cost structures, increasing domestic value addition and building resilient supply chains. Sustained and forward-looking policy support for electronic components and semiconductors is critical to reducing India’s import dependence, deepening localisation and strengthening the domestic electronics manufacturing ecosystem.”
As the Union Budget 2026 nears, expectations converge on strategic allocations to empower youth, reform education, advance clean energy and digital infrastructure, and fortify local manufacturing in high-tech sectors. These measures aim to harness India’s demographic advantage, drive sustainable growth, and enhance global competitiveness amid economic uncertainties.
Last Updated on Wednesday, January 28, 2026 8:59 am by Startup Newswire Team
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