“The Union Budget 2026 is a masterclass in structural reform, decisively positioning India as the world’s preferred engine for advanced manufacturing, digital engineering and sustainable innovation,” said Warren Harris, CEO and Managing Director, Tata Technologies, commenting on the Union Budget presented recently.
He said the government’s focus on rare earth permanent magnet corridors will significantly strengthen domestic supply chains critical for electric vehicles, aerospace and advanced electronics sectors that rely on deep engineering expertise.
“With the launch of India Semiconductor Mission (ISM) 2.0 and a strengthened outlay of ₹40,000 crore for electronics manufacturing, the government has shifted the ecosystem from assembly-led growth to high-value, full-stack IP and component sovereignty,” he said.
Harris noted that the strong push on STEM education, artificial intelligence integration and large-scale youth skilling is equally impactful. Initiatives to embed AI-enabled learning systems and expand research infrastructure reflect a clear commitment to building future-ready talent for Industry 4.0, he added.
“At Tata Technologies, we welcome this Budget as a strong enabler of the Viksit Bharat vision, reinforcing India’s ambition to emerge as a global leader in digital engineering and R&D,” he said.
He further said that enhanced support for electronics manufacturing, including the expansion of component incentives to ₹40,000 crore, along with streamlined IT services frameworks and higher safe harbour thresholds of ₹2,000 crore, will further strengthen India’s innovation ecosystem.
Incentives for aviation manufacturing and maintenance, repair and overhaul (MRO) are expected to accelerate high-value engineering opportunities across mobility and aerospace sectors.
“Overall, this Budget creates a robust platform for innovation-driven growth, advanced manufacturing and global technology leadership,” he added.
