Union Budget 2026-27: Will AI, Data Centres and Robotics Shape India’s Economic Future?

Every financial year, the budget in India is officially released in February. As we are approaching a new financial year, 2026-27, the government has started preparing the Union Budget 2026-27. The world economy is changing fast because of new technologies. This change may also be reflected in the upcoming budget.

As per the reports, the top economists and experts suggested giving special policy support to areas like data centres, artificial intelligence (AI), and robotics. These recommendations were given during a pre-budget meeting, held on Tuesday, chaired by Prime Minister Narendra Modi.

The meeting highlighted the requirement of improving the diversification of India’s service exports. Further argued that by focusing more on high-value areas like digital services, financial services, and knowledge-based work, India can better protect its economy from ups and downs in global trade.

If the government accepts these recommendations of experts, the Union Budget 2026-27 will be more stressed on the new age sectors such as AI and robotics. The goods exports in India are easily affected by the global challenges such as trade restrictions, weak demand in rich countries, and geopolitical tensions. Indian exports of services have helped in reducing this risk; however, India is not required to shift towards high-value services.

By focusing more on digital services, artificial intelligence, and knowledge-based work, a nation can generate a better income and be less affected by global challenges. Government support for data centres, AI, and robotics can help India go beyond traditional IT services.

Data centres are the backbone of the digital economy. Data consumption in India is rapidly increasing; however, the domestic data centre capacity is still limited. In this scenario, the government’s support, such as tax reliefs, cheaper power, easy land access, and quick approvals, can help in improving investment. Strong data centres will also enhance data security and reduce the overall cost of establishing any business or startup.

Artificial Intelligence can also play a vital role in improving productivity in areas like farming, healthcare, manufacturing, and governance. With proper funding for AI research, computing power, and industry-academic ties, India can create its own AI solutions instead of only using foreign ones. This will reinforce the country’s economy for the long term.