07 February 2026 | BW BUSINESSWORLD | 101Electronics & the Digital BackboneThe launch of Semiconductor Mission 2.0 with a Rs 40,000 crore outlay marks a pivotal shift towards building a full-stack semiconductor ecosystem with domestic depth. The emphasis on indigenous equipment manufacturing and Indian-owned intellectual property is especially relevant for power electronics, automation, and smart grid applications.Complementing this is the expanded Electronics Component Manufacturing Scheme, which will support domestic production of controllers, power devices, and sub-assemblies that anchor intelligent energy systems, critical enablers of digitalised energy systems and industrial automation.Sustained capital expenditure of Rs 12.2 lakh crore ensures continued momentum in infrastructure creation despite global uncertainty. Investments in high-speed rail, freight corridors, and national waterways will improve logistics efficiency while creating demand for advanced electrical, control, and automation solutions.India’s energy transition strategy is clearly broadening beyond generation to include carbon management and system resilience across industrial value chainsThe author is MD & CEO-India & South Asia, Hitachi Energy 2026The introduction of a Rs 10,000 crore SME Growth Fund and additional risk capital for micro-enterprises recognises that innovation and job creation will increasingly come from MSMEs embedded in global value chains. The proposed Rs 50,000 crore allocation for the Bharat AI Mission and the setting up of a High-Level Committee on Banking for Viksit Bharat further underline the intent to align technology, finance, and infrastructure with long-term growth objectives.Looking AheadBudget 2026–27 presents a cohesive blueprint for India’s next phase of development—one where power infrastructure, advanced manufacturing, digital technologies, and sustainability reinforce each other in a virtuous cycle. For the electrical equipment sector, the opportunity now lies in execution: scaling innovation, deepening domestic capabilities, and collaborating across the ecosystem to build resilient, futureready energy systems.
102 | BW BUSINESSWORLD | 07 February 2026BUDGET IMPACT By Reema Bhaduri“What this budget makes clear is that growth in the next decade will not be driven by visibility alone. It will be driven by infrastructure, trust, and repeatable systems” AMBIKA SHARMA, Founder and Chief Strategist, Pulp StrategyINANCE Minister Nirmala Sitharaman’s Union Budget 2026-27, presented on February 1, marked a decisive pivot in India’s economic strategy, one that gives weight to artificial intelligence, content creation and data sovereignty at the core of national growth. The budget signalled its shift from campaign-driven interventions to system-building investments that industry veterans believe will fundamentally alter how brands, platforms and agencies operate in the coming decade.AI Infrastructure PlayThe budget’s technology agenda centres on expanded AI infrastructure in Tier-2 and Tier-3 cities, with increased funding for AI-powered industry and continued support for national AI and research missions.“When we look at this budget through the lens of the marketing industry, the message is clear that AI is no longer a future tool but a present-day growth engine. The decision to increase funding for AI-powered, industry-linked labs in Tier-2 and Tier-3 institutions is especially important because it expands the talent and innovation base beyond metros and brings applied intelligence closer to real business problems,” said Dinakar Menon, Managing Partner and Business Head, BigTrunk Communications.For marketers increasingly reliant on data and machine learning for content creation, consumer insights, and automation, the spread of AI infrastructure presents a strategic advantage. Menon noted that this approach “creates a stronger pipeline of skills and solutions” while helping India FBudget 2026’s sharp focus on artificial intelligence, AVGC infrastructure and digital platforms signals strategic pivot toward intelligence-led economic systemsCREATOR ECONOMYAI-LED MARKETING VISION
07 February 2026 | BW BUSINESSWORLD | 1032026lock the next phase of creator-led commerce as creator-influenced spend moves towards $1 trillion by 2030,” he added.Data SovereigntyThe budget introduced several measures aimed at strengthening India’s data sovereignty and creating trust-based digital infrastructure, moves with significant implications for how marketing platforms and agencies will operate. Tax holidays for foreign cloud providers, conditional on using Indian data centres, coupled with reinforcement of DPDP Act Rules 2025, signal what Ambika Sharma, Founder and Chief Strategist of Pulp Strategy, describes as “data sovereignty by design.”“The move toward auditable disclosures for data centres, shifting from narrative compliance to measurable KPIs like power usage effectiveness, signals a broader move away from claims and toward proof. This is exactly how trust becomes an economic lever, not just a regulatory checkbox,” Sharma observed.Kalyan Kumar, Co-founder & CEO, KlugKlug highlighted that “tax reforms supporting IT and digital services, including automated safe harbour approvals and extended safe harbour thresholds from Rs 300 crore to Rs 2,000 crore, create a more predictable regulatory environment for digital platforms and influencer-driven businesses.”Digital Knowledge GridThe Digital Knowledge Grid, designed to monetise data and research, signals a move toward platformbased thinking. Paired with India’s goal to capture 10 per cent of the global services market by 2047, the budget articulates a clear vision of intelligence-driven growth. “What this budget makes clear is that growth in the next decade will not be driven by visibility alone. It will be driven by infrastructure, trust, and repeatable systems,” Sharma concluded. [email protected] “a marketing ecosystem that is smarter, more export-ready, and globally competitive”.Boost to Creator EconomyThe budget’s most talked-about announcement in marketing circles is the establishment of AVGC (Animation, Visual Effects, Gaming, and Comics) Content Creator Labs across 15,000 secondary schools and 500 colleges nationwide, a initiative that legitimises content creation as a mainstream career pathway. The AVGC signals a shift in how the government views digital content creation in India’s economic architecture.“The budget’s acknowledgement of the AVGC ecosystem goes beyond gaming or animation as sectors — it reflects a deeper understanding of how India’s youth learn, create and participate in the digital economy. By proposing AVGC Content Creator Labs across schools and colleges, the government is effectively recognising content creation, visual storytelling and interactive media as mainstream career pathways rather than side hustle,” said Atul Hegde, Founder & MD, YAAP.For Gen Z and Gen Alpha, Hegde noted, “Creativity is native, platform-led and community-driven.” The early exposure to structured tools and digital infrastructure can “help convert informal passion into employable skills and sustainable careers”. The shift from short-term campaign spending to long-term system building, the emphasis on trust and data sovereignty, and the formalisation of the creator economy all point toward an industry that will need to fundamentally rethink its operating models.According to Ankush Sachdeva, CEO and Cofounder of ShareChat and Moj, India’s creator economy “today influences over 30 per cent of consumer purchase decisions and nearly $350–400 billion in consumer spending.” “By enabling early, formal training in animation, visual storytelling and short-form content creation, this initiative will help creators build sustainable careers, improve content quality, and unKEY FIGURESn AVGC creator labs in 15,000 schoolsn AVGC labs in 500 collegesn Sector projected to require 2 million professionals by 2030 (policy justification)“The budget's acknowledgement of the AVGC ecosystem goes beyond gaming or animation as sectors — it reflects a deeper understanding of how India's youth learn, create and participate in the digital economy”ATUL HEGDE,Founder & MD, YAAP
104 | BW BUSINESSWORLD | 07 February 2026BUDGET IMPACT By Utkarsh AgarwalPhotograph by Photoevent Stock
07 February 2026 | BW BUSINESSWORLD | 105AUTO SECTOR NION Budget 2026-27 is shorn of headline-grabbing announcements for India’s automotive sector and industry responses to the budgetary proposals swayed between lukewarm to cautiously positive. The broad consensus within the automotive industry is that this was not a budget designed to immediately stimulate demand for vehicles. Instead, it strives to lay down a long-term, supply-side framework to address critical issues like a resilient supply chain, localisation and infrastructure-led growth.Resilient Supply ChainA defining theme of Budget 2026-27 is the attempt to reduce India’s dependence on imported components and materials key to vehicle manufacturing. The announcement of the Semiconductor Mission 2.0 with an outlay of Rs 40,000 crore, signals continuity and scale in the government’s ambition to localise chip manufacturing, packaging and design. For an industry increasingly defined by electronics – from powertrains and infotainment to advanced driver assistance systems (ADAS) and connected systems – the Semiconductor Mission 2.0 qualifies as a strategic intervention. Complementing it is the government’s decision to develop Rare Earth Corridors across mineral-rich states like Tamil Nadu, Kerala, Odisha and Andhra Pradesh. These corridors aim to strengthen exploration, processing, and value addition of critical minerals like rare earth elements, lithium and cobalt. For the electric vehicle (EV) industry, this is less about shortterm cost reduction and more about long-term supply security in a world where access to critical minerals has LONG-TERM GROWTH IN MANUFACTURING A PLAN PEGGED TO UThere are no quick wins for automakers in the Union Budget, but a long-term play focused on fixing the foundation of mobility and manufacturing, like strengthening the supply chain and building more infrastructure 2026-27
106 | BW BUSINESSWORLD | 07 February 2026BUDGET IMPACTbecome a geopolitical issue.Customs duty exemptions on capital goods and select inputs for lithium-ion batteries and EV components further reinforce this approach. Together, these measures aim to position India as a globally competitive hub for manufacturing and advanced automotive technologies.PLI Scheme for AutomobilesUnderpinning this supply-side push is the Production Linked Incentive (PLI) scheme for automobiles and auto components, which has been allocated Rs 5,940 crore in the 2026–27 Budget. The scheme, applicable till 31 March, 2028, covers battery electric vehicles, hydrogen fuel-cell vehicles across segments, and high-technology, high-value automotive components.According to government data, the auto PLI scheme has already attracted investments exceeding Rs 35,000 crore and supported production of nearly 14 lakh electric vehicles. These numbers indicate strong industry participation, but the next phase will test the scheme’s real effectiveness. The challenge now is to move from capacity creation to outcomes that matter like deeper localisation, cost competitiveness, technology ownership and export readiness. For both original equipment manufacturers (OEMs) and suppliers, the PLI is no longer just an incentive mechanism, it is a litmus test for India’s ambition to integrate meaningfully into global automotive value chains.Strategic MineralsThe budget reinforces the idea that the EV transition is as much about minerals and materials as it is about vehicles. Rare earths, lithium, cobalt, and other critical inputs are no longer just commodities, they are strategic assets for the mobility transition. By focusing on domestic processing and customs relief for critical minerals, the government is attempting to address one of the biggest vulnerabilities in India’s clean mobility roadmap.For EV manufacturers, this translates into improved supply security, cost predictability and reduced exposure to global disruptions. However, policy intent will need to be matched with execution on mining, refining, logistics, and environmental clearances. Without this, the strategic advantage of rare earths and critical mineral initiatives risks remaining largely on paper.Clean Mobility Beyond SubsidiesBudget 2026-27 continues to prioritise SHAILESH CHANDRA,President, SIAM and MD & CEO, Tata Motors Passenger Vehicles“Enhanced support for electronic components manufacturing, setting up dedicated corridors for mining and processing of rare earth, along with initiatives to establish high-tech tool rooms and supporting container manufacturing, will develop supply chain resilience and help in streamlining exports”BALBIR SINGH DHILLON,Brand Director, Audi India“Initiatives like the development of rare earth corridors and the advancement of ISM 2.0 under the India Semiconductor Mission are timely and critical. They signal a clear intent to build resilient domestic supply chains and a technology-driven manufacturing ecosystem”clean mobility, but without large-scale consumer subsidies. Instead, the emphasis is on ecosystem enablers. Duty exemptions on lithium-ion cells and capital equipment, combined with domestic electronics manufacturing, aim to lower production costs over time instead of offeriing immediate price relief. Says Shailesh Chandra, President, Society of Indian Automobile Manufacturers (SIAM) and Managing Director and CEO, Tata Motors Passenger Vehicles, “Continued exemption of Basic Customs Duty on capital goods used for manufacturing lithium-ion batteries, along with the extension of concessional duty benefits for lithium-ion cells and their parts used in manufacturing batteries for electric and hybrid vehicles for a further two years till March 2028, will enable creation of a robust EV ecosystem in the country.”The excise duty exemption on the biogas component of Bio-CNG blended CNG also supports cleaner fuels, particularly for commercial and public transport fleets. This measure could meaningfully reduce operating costs for fleet operators while advancing low-carbon mobility solutions beyond pure electrification. Public adoption is also being used as a catalyst. The allocation for 4,000 electric buses across five eastern states as part of a major infrastructure push under the ‘Purvodaya’ initiative, reflects a strategy of driving scale through public transport while building confidence in EV technologies.
07 February 2026 | BW BUSINESSWORLD | 107collection system (Multi Lane Free Flow) aimed at eliminating wait times at toll plazas and improving highway efficiency, while broader transport allocation and highway monetisation measures signal continued focus on reducing logistics costs and modernising user charges.Strengthening MSMEs The allocation of Rs 10,000 crore for an SME Growth Fund and incentives to champion MSMEs aim to strengthen Tier-2 and Tier-3 suppliers, which form the backbone of India’s automotive component ecosystem. Simplified compliance, logistics-led reforms, and ease-of-doingbusiness measures are designed to lower entry barriers for startups and smaller manufacturers. Shah describes this measure as “a positive step toward enabling future job creation, supporting enterprise scaling, and boosting competitiveness of small and medium businesses.”For the automotive industry, a resilient supplier base is vital. Cost efficiency, localisation targets, and quality standards depend heavily on the health of MSMEs. However, as past experience shows, the success of these initiatives will hinge on access, speed of implementation, and the ability of smaller enterprises to navigate compliance requirements.The Bigger PictureUnion Budget 2026–27 is not designed to energise showroom traffic overnight. Instead, it seeks to reshape the structural foundations of India’s automotive industry, from minerals and semiconductors to the scale of manufacturing and infrastructure reach. As Shah says, the Budget signals continuity in policy direction, a commitment to sustainable and inclusive growth, and a clear attempt to unlock India’s economic potential at scale. Volvo Car India’s Managing Director, Jyoti Malhotra echoes the same thoughts when he says, “The maintenance and sustenance of growth will encourage consumption across the board, creating a larger market for high value items. Coupled with ease of handling direct taxation and customs related rules, the economy should continue in an upward trend.”Whether or not this long game succeeds will depend not on intent, but on execution and on the industry’s ability to convert policy stability into global competitiveness. Infrastructure as a Growth LeverThe budget’s most consequential lever for the automotive sector may well be infrastructure spending. The government has raised public capital expenditure to Rs 12.22 lakh crore, a nearly nine per cent increase year-on-year, accounting for 4.4 per cent of GDP, the highest such allocation in at least a decade. Anish Shah, Group CEO and Managing Director, Mahindra Group, welcomes this increase, saying that the higher capex “underscores an unambiguous policy focus on infrastructure, regional development and job creation across the country. This will play a pivotal role in crowding in private investment, enhancing productivity and supporting the growth of Tier-2 and Tier-3 cities as emerging economic hubs.”This sustained focus on infrastructure is critical for simultaneously creating a demand for commercial vehicles, logistics efficiency and regional connectivity. Investments in highways, freight corridors, high-speed rail corridors, urban waterways and regional infrastructure, support not just vehicle sales, but also operating economics across the mobility ecosystem. For automakers, particularly in the commercial vehicle (CV), two-wheeler and entry-level car segments, infrastructure-led growth offers a more durable demand base than short-term tax incentives.Balbir Singh Dhillon, Brand Director, Audi India, points out that “Improved highways and intercity connectivity, especially across Tier-2 and Tier-3 markets, are strengthening the ownership and usage ecosystem for luxury automobiles.” He says, “The government’s focus on fiscal prudence, macroeconomic stability, and ease of doing business, reinforces confidence for long-term investments in the automotive sector.”The Budget also pushes forward toll reforms by accelerating plans for a satellite based, seamless toll ANISH SHAH,Group CEO & MD, Mahindra Group“Strengthening domestic value chains and reducing critical import dependencies will be key to India’s future industrial leadership” JYOTI MALHOTRA, Managing Director, Volvo Car India“The maintenance and sustenance of growth will encourage consumption across the board, creating a larger market for high value items. Coupled with ease of handling direct taxation and customs related rules, the economy should continue in an upward trend” 2026-27
108 | BW BUSINESSWORLD | 07 February 2026BUDGET IMPACT Column by Tushar ChoudharySTRENGTHENING ELECTRIC TWO-WHEELER FOUNDATIONNDIA’S electric two-wheeler (E2W) sector has moved decisively beyond its early, policy-driven phase. What began as an effort to address clean energy goals, air quality concerns, and dependence on imported fossil fuels is now firmly embedded in the country’s industrial and economic framework. As India progresses towards the Viksit Bharat vision, E2Ws play an increasingly indispensable role in everyday mobility, energy efficiency, and domestic manufacturing. They are shaping how India moves.IPolicy predictability allows manufacturers to plan capacity, commit capital, and invest in long-term product roadmaps with confidenceAUTO
07 February 2026 | BW BUSINESSWORLD | 109Over the past few years, the sector has learned to operate in a more disciplined and competitive environment. Demand has remained resilient even as incentives have been rationalised. Consumers today evaluate E2Ws on value, reliability, and long-term cost of ownership. This has also reshaped industry expectations from the Union Budget. The focus has shifted away from short-term demand stimulation towards policy stability, structural cost reduction, and long-term ecosystem development. Union Budget 2026 largely reflects this shift.The expectation was continued support for domestic manufacturing, attention to structural gaps in the supply chain, and a stable policy environment as the industry scales. Budget 2026 signals this intent by focusing on fundamentals rather than temporary measures, reflecting confidence in the sector’s ability to grow on the strength of its ecosystem.What Budget 2026 ChangesOne of the most significant aspects of Budget 2026 is its sustained emphasis on manufacturing. The government’s approach reinforces the principle that India’s electric vehicle growth must be anchored in domestic capacity rather than imports. For electric two-wheeler manufacturers, this provides the confidence to invest further in local assembly, battery integration, and component sourcing.The focus on critical minerals and the development of a rare earth corridor is particularly relevant. Batteries, motors, and power electronics depend on materials that remain vulnerable to global supply disruptions. By encouraging domestic processing and value addition, the Budget addresses a long-term structural challenge. Over time, this can reduce cost volatility and strengthen supply security for the industry.The Rs 10,000 crore allocation for micro, small, and medium enterprises is another meaningful enabler. Electric twowheelers rely on a wide network of MSMEs for components, electronics, metal parts, and charging-related infrastructure. Improving access to capital and technology support for these enterprises enhances quality, scale, and reliability across the supply chain, benefiting manufacturers and consumers alike.Equally relevant is the Budget’s focus on artificial intelligence and youth skilling. Modern electric two-wheelers are increasingly software-driven, with battery management systems, diagnostics, manufacturing automation, and customer experience all dependent on skilled talent. Aligning skilling initiatives with emerging technologies supports the sector’s long-term competitiveness.Budget Impact for Electric Two-wheelersFor the electric two-wheeler segment, the impact of these measures is direct and practical. Localised battery manufacturing and component sourcing reduce dependence on imports and foreign exchange exposure, enabling more predictable pricing in a highly price-sensitive market with intense competitive pressure.A stronger MSME ecosystem allows manufacturers to shorten supply chains and improve execution efficiency across procurement and production cycles. At the same time, access to skilled manpower enables greater focus on product quality, safety, and service standards rather than cost optimisation alone. As competition intensifies, these factors will increasingly determine which companies earn lasting consumer trust and brand loyalty.Equally important is the absence of abrupt regulatory shifts. Policy predictability allows manufacturers to plan capacity, commit capital, and invest in long-term product roadmaps with confidence and strategic clarity. In a capital-intensive industry, this stability is often more valuable than incremental incentives.A Forward-looking BudgetBudget 2026 does not seek to accelerate E2Ws through aggressive interventions. Instead, it reinforces a stable and supportive framework. By strengthening manufacturing depth, securing critical inputs, supporting MSME growth, and investing in skills development, it lays a solid foundation for responsible and sustainable industry expansion over the medium term.From the perspective of an electric two-wheeler manufacturer, this approach is reassuring. It recognises that durable growth is built on strong ecosystems rather than short-term stimuli. With continuity in policy and clarity in direction, the sector is well-positioned to expand adoption, improve quality, and contribute meaningfully to India’s economic and environmental objectives over time. Budget 2026 does not seek to accelerate E2Ws through aggressive interventions. Instead, it reinforces a stable and supportive framework — by strengthening manufacturing depth, securing critical inputs, supporting MSME growth, and investing in skills development2026 The author isFounder & Chief Executive Officer, Motovolt Mobility
110 | BW BUSINESSWORLD | 07 February 2026BUDGET IMPACT Column by Narayan SubramaniamELECTRIC MOBILITYIndia’s Budget 2026-27 lays the groundwork for sustainable electric mobility by strengthening supply chains, driving innovation, and positioning the country for global leadership in EVsHE UNION BUDGET 2026-27 has delivered a decisive message. India is not only committed to accelerating electric mobility but is also laying the foundations for long-term resilience in critical supply chains. In the EV industry, particularly among startups that are driving innovation through advanced technology development and are committed to research and development, this budget represents both continuity and a strategic inflection point.Momentum in Electric TwoWheelers: India’s electric two-wheeler STAGE SET FOR GLOBAL LEADERSHIP IN ELECTRIC MOBILITYmarket recorded 1.18 million registrations in 2025, an 11 per cent year-on-year growth that underscores the country’s strong momentum towards sustainable mobility. This achievement reflects the government’s commitment to clean energy and the industry’s ability to offer competitive products to that of conventional variants.The extension of support through FAME-II subsidies was instrumental in driving adoption, especially in commuter e-scooters. Yet, as we move forward, the Union Budget 2026-27 has broadened the canvas- signalling that India’s EV journey will be defined not by short-term incentives alone, but by structural investments in supply chains, TPhoto courtesy: Ultraviolette
07 February 2026 | BW BUSINESSWORLD | 111technology, and infrastructure.Building Strategic Supply Chain Resilience: The announcement of the rare earth mineral corridor is not just a policy measure; it is a strategic inflection point that can redefine India’s role in the global energy and technology landscape. By enabling integrated development across mining, processing, and manufacturing, India is taking decisive steps to reduce import dependencies and build a competitive edge that will endure. For EV companies, particularly those working on advanced battery chemistries and high-performance drivetrains, this marks a pivotal opportunity. Loalone rather than motorcycles. Yet India has traditionally been a motorcycle-first country, with motorcycles holding twothirds of the two-wheeler market. Budget 2026-27 provides hope. Dedicated R&D grants, localisation incentives tied to domestic battery content, and infrastructure mandates such as highway corridor charging stations may support the conditions for electric motorcycles to thrive. Dealer network guarantees, modelled on MSME support, would further enable OEMs to expand into Tier-2 and Tier-3 cities, ensuring accessibility and building trust in markets.Ambition for 2030 and Beyond: India’s goal of achieving 30 per cent electric vehicle penetration by 2030 is more certain than ever. This of course requires the ecosystem to remain diverse, with OEMs developing proprietary technology stacks, vertical integration, and profitability-first approaches. The Union Budget 2026-27 has signalled foresight – moving beyond reactive policy to define where India intends to lead globally in critical technologies. If India commits to this path over the coming decades, we can secure durable strategic advantage not only in EVs, but also in clean energy, aerospace, and advanced manufacturing, creating an India-first edge in the global energy transition.A Strategic Roadmap for Global Leadership: Budget 2026-27 is more than a financial statement; it is a strategic roadmap. By supporting OEMs and the ecosystem as partners in this journey, the government can ensure that India not only meets its 2030 targets but also establishes global leadership in electric mobility. The opportunity now is to align investments, innovation, and capacity expansion with India’s long-term vision. Consistency and foresight will define India’s EV journey to inspire the world. calisation of critical inputs will not only reduce vulnerability to global supply shocks but also empower domestic innovation.Equally significant is the doubling of the Auto PLI allocation. This signals intent. These steps would provide clarity, continuity, and confidence to companies investing in innovation, research and development, and building sustainable business models.EV Market Imbalances: While scooters accounted for over 95 per cent of EV two-wheeler sales in 2025, motorcycles contributed less than five per cent. This imbalance reflects how subsidies were structured around commuter e-scooters The author is the CEO of Ultraviolette 2026-27“The Union Budget 2026-27 has signalled foresight – moving beyond reactive policy to define where India intends to lead globally in critical technologies”
112 | BW BUSINESSWORLD | 07 February 2026BUDGET IMPACT Column by Colin ShahGEMS & JEWELLERYBoosting MSMEs will ultimately lead to a strengthened value chain, from artisans to manufacturers and finally to exporters handling massive international ordersGROWTH PUSH FOR EXPORTS
07 February 2026 | BW BUSINESSWORLD | 113HE Indian gems & jewellery exports have been a major contributor to India’s economic growth. As per the statistics, the Indian gems & jewellery exports from April 2025 to December 2025 stood at $20.75 billion, and is expected to reach anywhere between $75 billion to $100 billion. Having said that, there has been several headwinds right from geopolitical conditions to trade complexities that has been faced by the sector, leading to a free-fall in the export graph. The measures announced by our finance minister in the Union Budget 2026-27 is a robust blueprint that will give a fillip to the gems & jewellery exports from India, thus reinstating the sheen in the sector.One of the most important measures is the empowerment of the SEZs, specifically the one-time facility for SEZ units to supply to the domestic market at a concessional rate of duty. This is a massive step ahead in terms of increasing capacity utilisation and allowing manufacturers to better align their production with market demand. This also fits in with the overall plan of the government to make India a global hub for diamond trading and manufacturing.Another important announcement is the removal of the Rs 10 lakh cap on courier exports. This will allow small exporters, designers, startups, and artisans who rely on ecommerce platforms to reach international buyers to access global markets. For an industry that is characterised by high-value, low-volume exports, this will be a massive step ahead in terms of increasing exports. The decision to keep the status quo on import duties on gold and silver is also a welcome move, as it will allow exporters to plan for the future and grow in a sustainable manner.Customs Rationalisation and Policy StabilityThe reason why international jewellery hubs are successful is due to the speed, simplicity, and consistency of policies. India has made a significant step in the right direction with faster customs clearance, a single digital window, and simplified processes. This will help Indian exporters to easily meet the tight deadlines set by international buyers.Another important area is the stability of duty structures. If import duties are stable, then Indian exporters can set their prices more competitively, and they can sign long-term contracts with international buyers. With support for SEZs and improved trade facilitation, India is slowly bridging the gap with existing hubs such as Dubai and Thailand, and the added advantage of Indian craftsmanship and scale.MSMEs and Manufacturing-led GrowthThe gems and jewellery sector is mainly MSME-driven, and the budget’s emphasis on liquidity is very crucial. Steps such as integrating TReDS with GeM, making it mandatory for CPSE purchases, and increasing support for credit guarantees will facilitate faster payments and easier access to funds.For jewellery MSMEs, improved liquidity translates to uninterrupted production, easy procurement of raw materials, and investment in training and advanced manufacturing techniques. Sustainability and TraceabilitySustainability and responsible sourcing are becoming important in global markets. Although the Budget does not specifically outline incentives for traceability or ESG compliance, its continued support for diamonds, including lab-grown diamonds, and the drive towards digitisation and technologydriven trade processes provide a great foundation.Simplified documentation, digital customs, and enhanced export procedures will make it easier for companies to adopt transparent and traceable practices. Looking ahead, more specific incentives for technology adoption and sustainable manufacturing practices would help to further accelerate the industry’s transition. The Budget definitely takes the industry in the right direction. By emphasising policy stability, MSME development, SEZ reforms, and e-commerce-driven exports, it allows companies to divert their focus from scale to design, branding, and innovation.However, there are still some challenges that need to be addressed. For example, the rise in Securities Transaction Tax on futures may put additional pressure on trading. Such challenges need to be addressed while keeping the reform momentum going.Overall, these measures will strengthen the Indian gems & jewellery sector, which, in turn, will result in improved productivity, and significantly contribute to the growth journey of Bharat towards aatmanirbharta. By emphasising policy stability, MSME development, SEZ reforms, and ecommercedriven exports, the budget allows companies to divert their focus from scale to design, branding, and innovationThe author is MD, Kama Jewellery 2026T
114 | BW BUSINESSWORLD | 07 February 2026BUDGET IMPACT Column by Nirmal K. MindaMEGA BOOST FOR ELECTRONIC MANUFACTURING AMBITIONSELECTRONICS MANUFACTURINGNION Budget 2026–27 lays out an integrated roadmap to accelerate growth across India’s electronics and information technology landscape. Central to this strategy are the launch of India Semiconductor Mission (ISM) 2.0, a sharply higher allocation for electronics manufacturing, and calibrated tax reforms aimed at delivering policy stability and long-term predictability to the IT and ITeS industry.At a time when global supply chains are being reconfigured and digital capaUThe government aims to position India as a trusted global hub for electronics manufacturing and digital innovation
07 February 2026 | BW BUSINESSWORLD | 115bilities increasingly define economic leadership, the Budget underscores policy continuity. The government’s intent is to firmly position India as a reliable global hub for electronics manufacturing and digital innovation by systematically addressing key structural enablers and investment bottlenecks.Digital Manufacturing EcosystemASSOCHAM, in its Pre-Budget Memorandum 2026–27, had pressed for a deeper and more resilient digital and electronics manufacturing ecosystem capable of supporting long-term industrial growth and global competitiveness. Its recommendations focused on scaling digital finance and payments infrastructure, improving interoperability across Digital Public Infrastructure (DPI) platforms, and accelerating the nationwide rollout of the Account Aggregator (AA) framework.A robust digital payments ecosystem not only expands demand for electronic devices and secure hardware but also strengthens the fintech stack, driving innovation-led demand for domestically manufactured electronics and embedded solutions across consumer and enterprise segments. ASSOCHAM had further underlined the need to incentivise investments in data centres, cloud infrastructure, and high-performance computing facilities, recognising digital infrastructure as the foundational layer for semiconductor design, artificial intelligence development, and advanced electronics manufacturing at scale.AI Data Centres & Tax IncentivesThe budget introduces revised safeharbour provisions for IT and ITeS services, featuring higher thresholds and more competitive margins to enhance tax certainty and operational clarity for the sector. Under the proposal, software development services, IT-enabled services, knowledge process outsourcing, and contract R&D services will be consolidated under a single classification of ‘Information Technology Services’, with a uniform safeharbour margin of 15.5 per cent.The threshold for safe-harbour eligibility has been raised sharply from Rs 300 crore to Rs 2,000 crore. The approval mechanism will be fully automated and rule-based, eliminating discretionary tax officer review. Eligible companies can opt to remain within the safe-harbour regime for five consecutive years.This framework delivers long-term fiscal predictability and strengthens India’s positioning as a preferred destination for hyperscale cloud and AI-driven data centre investments. In a significant policy step, the government has announced India Semiconductor Mission (ISM) 2.0 to deepen the country’s capabilities in semiconductor design and manufacturing. The programme will prioritise domestic development of semiconductor equipment and materials, expansion of the chip design ecosystem, and intensified talent development initiatives. An allocation of Rs 1,000 crore has been earmarked for ISM 2.0 in FY2026–27.By addressing the semiconductor value chain end-to-end, ISM 2.0 aims to strengthen R&D capabilities, workforce skilling, and industry-led innovation. This integrated approach is essential for building long-term competitiveness in a sector that underpins modern electronics, digital infrastructure, AI applications, and next-generation computing technologies.The budget significantly scales up support for electronics manufacturing by nearly doubling the outlay for the Electronics Component Manufacturing Scheme (ECMS) to Rs 40,000 crore. The enhanced allocation signals a clear push to strengthen domestic component production, reduce import dependence, and improve supply-chain resilience.The expanded ECMS is expected to catalyse investments in critical segments such as printed circuit boards, camera modules, passive components, and power electronics—key building blocks for scaling consumer electronics, industrial electronics, and telecom equipment manufacturing across the country.Taken together, these measures align closely with the government’s broader objective of raising manufacturing’s share in GDP, deepening technology integration, and attracting foreign direct investment into high-value, future-ready sectors. Against the backdrop of global supply-chain disruptions and geopolitical realignments, India’s calibrated blend of fiscal incentives, infrastructure expansion, and digital ecosystem development enhances its appeal as an alternative manufacturing destination. ISM 2.0 aims to strengthen R&D capabilities, workforce skilling, and industry-led innovation. This integrated approach is vital for building longterm competitiveness in a sector that underpins modern electronics, digital infrastructure, AI applications, and nextgeneration computing technologiesThe author is President, ASSOCHAM 2026
116 | B W BUSINESSWORLD | 07 February 2026AFTER HOURSRunning a successful restaurant is not an easy task. What makes a good restaurant? Is it the food, the service, the ambience or the experience? It is a combination of all these factors, along with a few others, that delights customers and keeps them coming back.At BW Businessworld, welike to hearfrom food entrepreneurs about what makes their offering unique.We got in touch with Yogesh Sharma, Managing Director, and Chef Harpal Singh Sokhi, chefpreneur and mentor at Karigari, to understand how they are making Karigari a success By Jyotsna SharmaF & BChef Harpal Singh Sokhi 11 OUTLETS IN FOUR YEARS Clarity of concept drives Karigari’s successKarigari has opened 11 outlets in four years. All of these have achieved breakeven, and according to Sharma, this is strong validation of their operating model and unit economics. They plan to open 25 outlets over the next three years across Delhi-NCR, Mumbai, Bengaluru, Pune, Hyderabad and key Tier-2 cities.The formula for successAs per Sharma, the key aspects of focus in creating a successful restaurant are clarity of concept and purpose. He says the food, the storytelling, the design, and even the pricing should all point in one clear direction. “At Karigari, we didn’t set out to be just another North Indian restaurant; we set out to celebrate India’s culinary heritage and the hands behind it. When your concept is clear, decisions become easier, and the brand becomes memorable.” He believes that focus on quality and consistency is essential, as customers might visit initially for the idea, but over time, they return for consistency. “Scaling to 11 outlets was possible only because systems were built early, ensuring that the experience remains the same whether you are dining at one location or another. And of course, investing in your people and culture is key. Restaurants are powered by people. Investing in your chefs, service staff, and managers, training them, respecting their craft, and giving them a sense of ownership creates a culture that guests can feel.” For Chef Sokhi, conceptualising the menu and innovating with new items and ingredients is a continuous process. “As a chef, I see it as my responsibility to revive forgotten recipes and reinterpret them in a gourmet format, serve them with dignity, while also honouring the karigars behind these culinary traditions in our menu.” He is closely involved with the training of the chefs across their outlets Butter chicken
07 February 2026 | BW BUSINESSWORLD | 117since he believes food is both about technique and respect for the craft. “While we have structured systems and senior teams in place across outlets, I ensure that the philosophy behind every dish is clearly passed on.”We asked them what it costs on average to set up a restaurant in Delhi, and which aspects should be the primary focus areas when starting. Sharma says, on average, setting up and sustaining a good, decently sized Indian restaurant in Delhi requires an investment of approximately Rs 4 crore, while factoring in real estate, interiors, kitchen infrastructure, licenses, and adequate working capital to run the business for the first year. “If I had to prioritise one area of investment, it would be core operations, specifically food quality and people. Investing in high-grade inputs, recipe standardisation, and chef capability building.” He believes marketing might drive first-time trials, but repeat footfall is driven by consistent product delivery. Further, proper training frameworks, SOP-led kitchens, and quality control I felt an overwhelming sense of pride, which wasn’t just about serving good food; it was about representing India on a plate. Knowing that I was helping shape their first impression of our cuisine and our culture reminded me why I do what I do. As a chef, there is no greater honour than introducing the soul of your country to the world.”Looking aheadThe biggest challenge, according to Sharma, when setting up the outlets has been securing the right locations. “Finding spaces that align with the brand’s scale and storytellingled experience, while managing high rentals in premium markets, requires careful evaluation and longterm planning. Balancing visibility, accessibility, and financial viability remains one of the most critical and demanding aspects of expansion”, he says. “Looking ahead, our expansion strategy is structured and phased. In 2026-27, we plan to strengthen our presence across key Indian cities such as Chandigarh, Gurgaon, Jaipur, Mumbai, Pune, Bengaluru, Hyderabad, and Kolkata, along with select highpotential markets in North India. Beyond domestic growth, we are also preparing to take Karigari global, with London, Dubai, and Singapore as priority international markets,” says Sharma. [email protected] scalability across Karigari are what make the brand attractive to investors. In under four years, we have successfully built and operated 11 large-format outlets, all of which are operationally stable. This combination of strong brand recall, consistent footfalls, and disciplined growth makes the brand attractive to investors who are looking for both creative differentiation and commercial sustainability.”For Chef Sokhi, one of the proudest moments along the journey was when a couple from London, on their first trip to India, experienced their first Indian meal at Karigari in Connaught Place and appreciated the food so much that they decided to visit again. “In that moment, systems ensure minimal variance across outlets, protect brand integrity at scale, and ultimately create a sustainable, high-retention restaurant business.What makes the brand attractive to investors? Says Sharma, “The distinct menu philosophy, immersive dine-in experience, and Yogesh Sharma Karigari in Connaught Place
118 | B W BUSINESSWORLD | 07 February 2026AFTER HOURS WELLNESS Dhun Wellness, a luxury wellness centre founded by Mira Kapoor, has raised US$ 4 million to fund its expansion to an urban luxury wellness ecosystem. The round saw participation from family offices, including SRF (Kama Group) and Havells India (QRG Investment & Holdings), Arushi Aayush Agrawal (Inspira Global), along with angel investors, Ash Lilani of Saama Capital, Timmy Sarna, Abhishek Goyal, Sunil Punjabi, and Kaushik Deva, led by Sanjay Kapoor of Genesis. We caught up with Mira Kapoor to understand her vision for Dhun Wellness and expansion plans By Jyotsna Sharma What inspired Dhun Wellness?Dhun Wellness was born from a very personal understanding of modern urban fatigue - how city life quietly erodes energy, gut health, sleep, and long-term vitality. I have always believed that wellness should not be episodic or escapist. It needs to be integrated into everyday urban living. What inspired Dhun was the gap between ancient wisdom systems like Ayurveda and the emerging science of longevity. I wanted to create a space where preventive health, recovery, and longterm optimisation could co-exist, without requiring people “We sit at the intersection of traditional healing and modern longevity science”Mira Kapoor
07 February 2026 | BW BUSINESSWORLD | 119What are the key focus areas for anyone starting in the wellness space as an entrepreneur?First, clarity of philosophy. Wellness is not a trend; it’s a long-term commitment. Founders need to be deeply clear about what problem they are solving. Second, outcomes over optics. Today’s consumer is informed and discerning. Wellness offerings must be traceable, personalised, and results-driven. Third, patience. Wellness businesses don’t scale overnight. Trust, credibility, and repeat engagement are built over time, and that’s something entrepreneurs must be prepared for.How has Dhun Wellness been received so far? Which treatments are most sought-after?The response has been extremely encouraging. Some of our most sought-after offerings include therapies such as lymphatic drainage, gut health, hormonal balance, stress regulation, and preventive care. We are building a category of luxury urban wellness, one that is deeply personalised, evidence-backed, and designed for consistency rather than indulgence.What challenges have you had to overcome to make a mark in this sector?One of the biggest challenges has been building trust in a space that is often polarised, either overly spiritual or overly clinical. Our focus has been on creating credibility through outcomes, protocols, and depth of experience.Operationally, building a wellness ecosystem that is both high-touch and scalable is complex. Training talent, maintaining clinical integrity, and ensuring consistency across experiences takes time and discipline. But we were very clear from the beginning that growth would never come at the cost of depth.to leave their cities or their routines. Dhun Wellness is designed as an in-city luxury urban wellness sanctuary, where healing is proactive, personalised, and built for longevity, not crisis management.Who is your target audience, and what sets your offering apart from others in the market?Our core audience is the urban Indian - professionals, founders, creatives, athletes, and wellness-aware individuals, who are increasingly thinking beyond surfacelevel self-care and looking for measurable, long-term health outcomes.What sets Dhun apart is that we are not a spa, nor are we a clinical wellness centre. We sit at the intersection of traditional healing and modern longevity science. Every journey at Dhun Wellness begins with a deep consultation and is designed around healing, recovery, and rejuvenation; addressing inflammation,
120 | B W BUSINESSWORLD | 07 February 2026AFTER HOURS WELLNESSearly traction we have demonstrated.How has the last quarter been in terms of revenue?The last quarter has been strong and encouraging, marked by consistent month-on-month growth and high repeat engagement. What’s particularly reassuring is the quality of demand; clients are committing to longer-term wellness journeys rather than one-off treatments, which requires clarity and conviction. Investors today are backing businesses with strong fundamentals, differentiated positioning, and long-term relevance. We were fortunate to have partners who deeply understood the opportunity in preventive health and longevity, and who aligned with our vision of building India’s first integrated luxury urban wellness ecosystem. The fundraiser was a validation of both the concept and the infrared and inflammationreduction protocols, gut health programmes, and personalised longevity journeys. What we are seeing is a shift; clients are coming to us not just to relax, but to optimise how they feel and function in the long-term.Dhun Wellness has raised US$ 4 million. How challenging was fundraising in the current economic climate?Fundraising in this climate reinforces the longevity-led nature of our model.What are your expansion plans?Over the next 12–18 months, we plan to expand into key urban markets, beginning with a flagship centre in Delhi, followed by Pune, Hyderabad, Bengaluru, and Ahmedabad. Our approach to expansion is deliberate. Each centre will mirror Dhun Wellness’ core philosophy, which is deeply personalised care, strong clinical frameworks, and an elevated yet calming experience. The goal is not rapid footprint growth, but building a trusted, category-defining urban wellness platform across India. [email protected]“We are building a category of luxury urban wellness, one that is deeply personalised, evidencebacked, and designed for consistency rather than indulgence”
07 February 2026 | BW BUSINESSWORLD | 121On the significance of India–EU FTA I see the India–EU Free Trade Agreement (FTA) as a landmark moment that goes well beyond tariff lines or market access. In a fragmented global economy, this agreement sends a strong signal of trust, stability and strategic alignment between India and Europe. It reflects decisive leadership on both sides and reinforces the idea that longterm partnerships still matter. For Indian and European businesses alike, the deal opens new avenues for collaboration, especially in digital infrastructure, secure networks, space connectivity and advanced technologies. I believe the FTA positions India not just as a large market, but as a trusted innovation partner, while also creating opportunities for Indian companies to invest and expand their digital footprint in Europe.On the Union Budget 2026-27For me, this Budget strikes the right balance between ambition and realism. The emphasis on skilling, science, innovation and research is timely and essential if India is to strengthen domestic capabilities and reduce dependence on imports in critical sectors. Equally important is the continued push on infrastructure, logistics and energy efficiency, which underpins confidence across the economy. The focus on data centres and the digital ecosystem signals a clear recognition of where future growth will come from. Overall, I see the budget as a strong statement of intent—one that supports technology-led growth, expands financial inclusion and invests in education to secure India’s long-term talent dividend.On the issues facing the telecom sector The single biggest issue is the sustainability of the business model. Tariff repair is no longer optional; it is essential. Building and maintaining worldclass digital infrastructure requires continuous, large-scale investment in networks and spectrum. At current tariff levels, that equation simply does not work over the long term. A reasonable increase, shared broadly across users, would strengthen the entire ecosystem and ensure better quality of service for everyone. At the same time, regulatory clarity—particularly around issues like AGR reassessment—is crucial. The sector needs a fair, rational framework that recognises mathematical corrections without seeking concessions, so that investment confidence remains intact and India’s digital highway continues to expand. As told to Ashish SinhaSunil Bharti Mittal, Founder LAST WORD & Chairman, Bharti EnterprisesSUNIL MITTAL on how he sees trade optimism, clarity and telecom sustainability as priorities as India navigates growth, investment and digital infrastructureSIGNALS ACROSS THREE FRONTSBuilding and maintaining world-class digital infrastructure requires continuous, large-scale investment in networks and spectrum. At current tariff levels, that equation simply does not work over the long term
Arena Creative Conference StationPresent in 66 locations across India, also in Nepal, Sri Lanka,Philippines and U.A.E.For more details visit our website www.featherlitefurniture.com 080 4719 1010 [email protected] Featherlite Pods and Meeting Stations, the beginning of a revolution in work culture driven by a sense of comfort, efficiency andpurpose. Creatively straddling the world between private and public space. It’s time to feel at home, at work.Now available on