Harshil Mathur, CEO & Co-Founder, Razorpay

By utilising technology and artificial intelligence as the backbone to advance the vision of Viksit Bharat, the budget strikes a fine balance between ambition and inclusion. The strategic roadmap ensures that digital transformation is more than a lofty goal; it is a tool for equitable development.

At a time when the world faces heightened economic uncertainty, this budget identifies sovereign AI and scalable technologies as its strategic priorities. The approach anchors national progress toward technological self-reliance to realise the Viksit Bharat vision. 

Force multiplier

A key need for India has been truly inclusive growth. A growth engine that encourages the use of technology across the country, be it in large cities or smaller centres. However, the roadblocks to this democratisation through technology have centred on a lack of awareness and education. The government has identified this as a key pain point and is addressing it through a high-powered committee that will identify areas of growth, including an impact assessment of AI on jobs and skill requirements.

Indian tech companies are growing at a breakneck speed, with consolidated annual revenue projected to cross $280 billion in FY26, supported by a workforce of over 6 million. The country has solidified its position as a global nerve centre, hosting over 1,800 Global Capability Centres (GCCs), including more than 500 dedicated to AI, increasing opportunities to create jobs.

To consolidate these wins, the government has implemented several measures to champion emerging technologies. This includes over ₹10,300 crore allocated for the IndiaAI Mission, Rs 6,003.65 crore outlay for the National Quantum Mission, and ₹14,000 crore set aside for the Anusandhan National Research Fund, alongside a dedicated capital pool of Rs 1 lakh crore for the Research, Development and Innovation Scheme.

Reengineer finance and capital

Technology and innovation require a financial system that is accessible and affordable. The budget announced an expert committee to review the sector and introduce reforms to align it with market needs, while empowering NBFCs to enable efficient credit disbursement and rapid technology adoption. A much-needed reform in Foreign Exchange Management Rules will streamline cross-border capital flows and simplify FDI compliance for fintechs.

To deepen India’s capital markets, the budget has more than doubled individual portfolio investment limits for persons outside India from 10 percent to 24 percent.

Championing MSMEs

The MSME sector, comprising over 7.47 crore enterprises, provides employment to over 32.82 crore people and accounts for nearly one-third of GDP and nearly half of exports. The budget acts as a financial catalyst to MSMEs through its Rs 10,000 crore SME Growth Fund. Furthermore, professional bodies will train “corporate mitras” to assist MSMEs with affordable compliance, ensuring these firms can access formal finance.

The most transformative change for export-oriented MSMEs is the removal of the Rs 10 lakh value cap per consignment. The reform, combined with technology to handle rejected or returned consignments, significantly lowers the barrier for entrepreneurs to access global e-commerce markets.

Finding scale

To zoom out, this budget is a strategic pivot that will revolutionise India’s tech-native economy, bridge the gap between education, employment, and enterprise. The path forward requires unwavering commitment to implementation and stronger collaboration between the public and private sectors, particularly with digital-native organisations. Crucially, deeper collaboration between fintechs and the government will foster an agile regulatory landscape and serve as a key accelerator for next-gen digital public infrastructure. India will not just scale existing models but also reinvent the new global standard. The future belongs to those who build, and India is ready to lead.

Harshil Mathur, CEO & Co-Founder, Razorpay

Published on February 1, 2026