Union Budget 2026 Draws Strong Industry Reactions Across Biopharma, AI, Skilling, AVGC and MSMEs

February 1, 2026 : The Union Budget 2026 has triggered positive reactions from leaders across sectors. From biopharma and AI-led education to animation, skilling, and MSMEs, the budget is being seen as a long-term growth enabler. Industry experts say the focus on innovation, employability, and decentralised growth strengthens India’s global standing.

Union Budget 2026 Boosts India’s Biopharma and Vaccine Leadership

Dr. K. Anand Kumar, MD, Indian Immunologicals Ltd, said the Union Budget 2026 marks a defining moment for India’s biopharma journey.

With the ₹10,000 crore BioPharma Shakti initiative, India’s goal to become a global vaccine and biologics hub has been reinforced. Currently, India supplies nearly 60% of the world’s vaccines. Now, the shift from volume-led manufacturing to innovation-driven leadership is being accelerated.

Moreover, investments in advanced manufacturing, high-containment facilities, and indigenous raw materials such as culture media and adjuvants will strengthen supply chain resilience. As a result, India is moving closer to becoming a trusted global hub for affordable vaccines and health security.

Union Budget 2026 Signals a Skill-First Future for India’s Youth

Rahul Attuluri, CEO and Co-Founder of NxtWave Disruptive Technologies, described the Union Budget 2026 as a “Yuva Shakti–driven budget.”

Importantly, the focus has shifted from degree-based education to skill-based employability. The proposed ‘Education to Employment’ standing committee is expected to bridge long-standing gaps between learning and jobs.

In addition, expanded higher education capacity and better access will create inclusive learning ecosystems. The emphasis on AI and future skills positions India to build a globally competitive workforce and target a 10% share of the global services economy by 2047.

Skilling, AI and Data Centres Get a Major Push

Mr. Karun Tadepalli, Co-Founder & CEO, byteXL Pvt Ltd, said the budget sends a clear message that growth will be powered by human capital and deep tech.

While the edtech sector has faced challenges in recent years, AI-focused investments are restoring confidence. The long tax holiday for foreign cloud firms operating through Indian data centres is also seen as a game changer.

Furthermore, stronger digital infrastructure and affordable cloud access will help startups and skilling platforms scale faster. Industry-aligned curricula and hands-on learning are now being encouraged to make students job-ready.

AVGC Sector Emerges as a Key Growth Engine

Rajiv Chilaka, Founder & CEO, Green Gold Animation, welcomed the renewed focus on the AVGC sector.

The creation of Animation, VFX, Gaming and Comics labs in schools and colleges will build a strong talent pipeline. Notably, this move will support the industry’s need for nearly 2 million professionals by 2030.

Equally important, regional creators will gain access to world-class tools. This will boost local-language IP creation, expand jobs, and strengthen India’s cultural exports.

Union Budget 2026 Strengthens MSMEs Beyond Metro Cities

Dr. Irfan Khan, Chairman of EBG Group, highlighted the impact of MSME-focused measures in the Union Budget 2026.

The ₹10,000 crore SME Growth Fund and ₹2,000 crore top-up to the Self-Reliant India Fund aim to support businesses in Tier-II and Tier-III cities. Reforms in TReDS, invoice discounting, and credit guarantees will ease working capital stress.

Additionally, the introduction of ‘Corporate Mitras’ will simplify compliance and speed up formalisation. With revived industrial clusters and a decentralised approach, MSMEs are now better positioned for sustainable growth.

Overall, the Union Budget 2026 has laid a strong foundation for innovation-led growth. By focusing on skills, technology, creativity, and grassroots entrepreneurship, India is being prepared for long-term global competitiveness.

Also Read : Union Bank of India Signs MoU with C2FO for TReDS Platform to Boost MSME Liquidity