Budget watch: Calls grow for startup, cyber and export support

As the Union Budget 2026 approaches in February, expectations are building across India’s startup and technology ecosystem. Beyond headline allocations, industry leaders are urging the government to address structural gaps that could unlock innovation, boost job creation and strengthen domestic capabilities in areas ranging from early-stage investing to cybersecurity.

Entrepreneurs and investors argue that the coming Budget offers a timely opportunity to refine existing frameworks, moving beyond intent to execution, at a time when India’s startup ecosystem is maturing but still constrained by regulatory and market-access barriers.

Democratise angel investing to widen innovation base

One key area of focus is angel investing. Vinay Bansal, CEO and Founder of Inflection Point Ventures (IPV), believes the Budget can play a pivotal role in broadening participation in startup funding.

Bansal argues that allowing professionals and small investors to invest modest amounts in startups could significantly accelerate innovation and value creation. “The next Budget provides an opportunity to really impact innovation, job creation and value creation via democratising angel investing in India,” he says.

According to him, current accredited investor norms, while designed to protect investors, may be overly restrictive at this stage of ecosystem development. He points out that professionals are already trusted to invest in publicly listed companies and should similarly be allowed to invest limited amounts in startups, provided adequate safeguards are in place.

Bansal adds that India’s startup ecosystem already operates under SEBI guidelines that emphasise trust and transparency. “Practices around trust and transparency should suffice while still creating an environment where small investors can contribute more than just capital, share expertise, and benefit from potential returns,” he notes. In his view, easing these norms could help investors and startups grow together, while also contributing to national economic growth.

‘Make in India’ needs enforcement, not just intent

From the enterprise technology side, Sequretek’s CEO and Co-Founder, Pankit Desai, stresses that policy intent must be matched with implementation, particularly when it comes to local procurement.

“To truly strengthen ‘Make in India,’ we need more than lip service,” Desai says. He argues that government departments should be actively encouraged to prioritise Indian vendors, backed by a clear enforcement mechanism. Without this, resistance can persist from stakeholders who favour multinational products for non-technical reasons.

Desai draws parallels with existing compliance frameworks, such as MSME procurement norms and payment timelines, suggesting that similar accountability could drive meaningful adoption of domestic technology solutions.

Export push and clarity on cybersecurity spending

Desai also highlights the need for stronger government support to help Indian companies access global markets. While some initiatives exist, he says resources, both financial and human, remain insufficient. He suggests that the government could play a more proactive role by sponsoring participation in international trade fairs and facilitating overseas expansion.

On cybersecurity and artificial intelligence, Desai welcomes the earmarking of funds but calls for greater clarity on how these allocations will be deployed. “Budgets should focus on boosting cyber efficiency through Indian companies,” he says, proposing a dedicated cybersecurity fund modelled on existing structures such as the Fund of Funds. Such a mechanism, he believes, could channel resources more effectively and translate policy intent into measurable outcomes.

A Budget that bridges policy and execution

As policymakers put the final touches on Budget 2026, voices from the startup and technology ecosystem are united in their call for practical reforms. Whether through widening access to early-stage investing, enforcing local procurement, or sharpening the focus of cybersecurity spending, industry leaders are looking for signals that the government is ready to move from aspiration to action.

With innovation, jobs and strategic self-reliance at stake, Budget 2026 could prove to be a defining moment in shaping the next phase of India’s economic and technological growth.