A call to strengthen India’s indigenous Defence & Space Technology ecosystem. The Union Budget 2026-27 is a timely moment to double down on India’s indigenous defence and space technology ecosystem by converting big-ticket outlays into indigenous capabilities feueling tech sovereignty. “Technology in National Security” can translate into mission-linked demand for India-designed and controlled systems. Supply chains will get reinforcement through semicon and electronics components support, while critical minerals and export mechanisms could be made startup-accessible to scale globally.
Sanjay Kumar, Cofounder, EON Space Labs
“The 2026 Union Budget and its continued focus on domestic manufacturing, critical minerals and stronger supply chains showcase long-term strategic thinking. The Rare-earth corridors will make a long term difference and basic customs duty exemption on import of capital goods required for processing of critical minerals is a good step in this direction. Equally important is how effective capex expenditure translates into strategic tech demand, including Defence at ₹5,94,585 crore and ‘Technology in National Security’ at ₹9,800 crore, which we feel should be expanded even further. Execution and predictable procurement in our case will drive Indigenously-designed and manufactured EO/IR imaging payloads to scale faster. The Budget’s proposal to exempt basic customs duty on imports supporting civil aviation and defence manufacturing, including aircraft parts and raw materials, is also commendable.”
Punit Badeka, Cofounder, EON Space Labs
“For us, supply chains and smooth procurement can sometimes be challenging, especially electronics, components, boards, and subsystem vendors and the present Union Budget’s continued support for domestic manufacturing is a welcome move. The allocation of INR 1,500 crore for the Electronics Components Manufacturing Scheme, and ₹8,000 crore for the modified programme aimed at strengthening India’s semiconductors and display manufacturing ecosystem. On the MSME side, liquidity and scale-up support is also a practical enabler, with ₹9,000 crore for the GECL facility, ₹1,900 crore for the MSME Fund of Funds, and ₹1,500 crore under RAMP. This will help to further reduce bottlenecks across the domestic supplier base.”
Manoj Kumar Gaddam, Cofounder, EON Space Labs
“Critical minerals and exports sit at the core of supply-chain resilience. Measures like ₹500 crore for activities through the National Mineral Exploration and Development Trust are directionally relevant because material security ultimately feeds advanced manufacturing. On the export side, instruments like Lines of Credit under IDEAS at ₹1,675 crore can help Indian technology engage overseas through structured financing channels. For emerging-tech capability, Budget support for R&D in IT/Electronics/CCBT at ₹1,248 crore and PM One Nation One Subscription at ₹2,200 crore strengthens the knowledge and innovation base that deeptech hardware teams depend on.”
