From Our Desk: GCCs in India: From Support Hubs to Global Innovation Engines

The countdown to the Union Budget 2026 on 1st February is on, and as someone deeply involved in technology adoption and digital transformation, my interest isn’t just in the numbers; it’s in what this budget could practically mean for IT startups and technology companies operating in India.

We’ve spent years building and advising companies that turn technology into operational impact, and from that lens, Budget 2026 will likely focus on helping startups and tech companies scale, execute, and deliver real-world value.

1. Execution and Scaling Will Take Center Stage

The abolition of the angel tax in 2024 helped startups breathe easier. The next step, I believe, is the “execution layer”, policies that enable companies to move from pilot projects to production-ready solutions. The budget could provide incentives for startups that successfully operationalize technology, not just ideate it.

2. Focus on AI-First Infrastructure

With AI and automation becoming central to enterprise efficiency, Budget 2026 is likely to push AI adoption at scale. For IT companies, this could mean support for AI-driven platforms, cloud adoption, and data infrastructure, enabling startups to offer solutions that directly improve business processes for their clients.

3. Long-Term Capital and Growth Opportunities

While past budgets have addressed funding gaps, 2026 may focus on long-term capital access, helping growth-stage startups scale sustainably. This aligns with the broader industry need for patient, execution-focused investment, enabling tech companies to expand their offerings without being constrained by short-term capital cycles.

4. Operational Efficiency Through Digital Transformation

My perspective has always been that technology’s real impact is measured in how well it improves operational efficiency. The budget could incentivize solutions that help enterprises optimize workflows, automate processes, and scale digital operations, which is a massive opportunity for IT startups and mid-sized tech firms.

5. Strengthening Enterprise–Startup Collaboration

We are entering an era where large organisations will increasingly rely on startups to deliver specialised solutions. Budget 2026 could encourage collaborations, partnerships, or public-private initiatives that allow startups to integrate their solutions into larger enterprise workflows, making technology adoption smoother and faster.

6. Digital Public Infrastructure and Enterprise Adoption

India’s Digital Public Infrastructure (DPI) continues to mature. I expect the budget to encourage technology solutions that can integrate with DPI, enabling startups to scale more efficiently across government and enterprise ecosystems.

7. Mindful Scaling and Sustainable Growth

Finally, the budget is likely to reflect a broader shift from “growth-at-all-costs” to “Mindful Scaling”. This means startups and tech companies will need to focus on scalable, sustainable growth, operational maturity, and measurable ROI, which aligns perfectly with how we advise clients to approach digital transformation.

Final Thoughts

Budget 2026 is not just another policy statement. From my perspective, it has the potential to shape how technology delivers real business outcomes in India. For IT startups and tech companies, the opportunity lies in helping enterprises work smarter, automate better, and scale faster.

This year’s budget could be the catalyst that turns innovation into execution, and execution into India’s next decade of tech-led growth

Team IndiaIT360

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