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The Union Budget 2026: A Catalyst for Sectoral Growth
As India prepares for its Union Budget on February 1, 2026, Finance Minister Nirmala Sitharaman is set to present her ninth budget, with significant expectations from various industry sectors. The upcoming fiscal roadmap is anticipated to drive forward the government's key initiatives like 'Make in India' and the 'Digital India' program, with a particular focus on boosting manufacturing, innovation, and global competitiveness across electronics, consumer goods, television, and the rapidly expanding gaming and esports industries. The Budget session is scheduled to commence on January 28, 2026.
Electronics and Television Manufacturing: Calls for Policy Reinforcement
The consumer electronics and television manufacturing sectors are advocating for sustained policy support to bolster domestic value addition and strengthen supply chains. Industry stakeholders highlight the need for next-phase component-linked incentives and schemes to address global cost inflation impacting device affordability. The Manufacturers Association for Information Technology (MAIT) has recommended reducing basic customs duty (BCD) on sub-assemblies like camera and display modules, alongside incentives for critical component manufacturing. The television industry continues to seek a dedicated Production Linked Incentive (PLI) framework, citing challenges such as limited display fab availability and semiconductor supply constraints, to enhance cost competitiveness and global standing.
Gaming and Esports: Aspiring for a Mainstream Role
The gaming and esports industry, recognized as a significant pillar of India's digital and creative economy, is urging for policy measures that acknowledge its growth potential. Key demands include fair and differentiated taxation for esports, aligning it with traditional sports, and easier access to financial services for gaming businesses. Industry leaders are also requesting targeted funding under the Animation, Visual Effects, Gaming, and Comics (AVGC) framework to support Indian game development and original intellectual property (IP) creation. With an estimated 591 million gamers in 2025, India's gaming market is projected to reach approximately ₹66,000 crore ($8.9 billion) by 2028-29, underscoring the sector's economic significance.
The AVGC Framework: Driving Innovation and Employment
The AVGC (Animation, Visual Effects, Gaming, and Comics) framework is central to developing India's capabilities in content creation and intellectual property. Stakeholders emphasize the need for budgetary commitment towards skilling, R&D, and studio incubation to accelerate India's position as a global game development hub. The sector is viewed as a key driver of GDP growth and employment, with policy support aimed at fostering global competitiveness and export-led growth.
Broad Manufacturing Landscape: Enhancing Competitiveness
Beyond specific sectors, the broader manufacturing industry is looking to Budget 2026 for reforms that enhance system-level competitiveness, address bottlenecks, and foster innovation. Expectations include continued emphasis on improving infrastructure, cost competitiveness, and digital adoption. Discussions also point towards the need for predictable labour laws, simplified compliance, and enhanced vocational training to equip the workforce for evolving industry demands, including those driven by AI.