Tag: Fintech compliance and regulatory stability India AI startup scaling challenges in India budget

Varun Kashyap and Sridevi Reddy, Co Founders, Zithara AI; Deepak Chand Thakur, Chairman and Managing Director, NPST; Bhavin Patel, Co Founder and Chief Executive Officer, Vartis Platforms; Sameer Kanodia, Managing Director and Chief Executive Officer, Lumina Datamatics Limited; Nandagopal P, Chief Executive Officer, Asymmetri, Chief Technology Officer, Gacsym Ventures and Limited Partner, Arya Ventures; and Chanakya Bellam, Board Member, AION Tech Solutions Limited, outline expectations around AI funding, digital public infrastructure, fintech sustainability and technology led services growth ahead of the Union Budget

As India prepares for the Union Budget 2026, technology, fintech, and digital infrastructure leaders are calling for a decisive shift from scale-driven growth to innovation-led global competitiveness. With artificial intelligence, digital public infrastructure, and data-led platforms becoming foundational to economic expansion, industry leaders stress that the next phase of India’s growth will depend on sustained investments in deep technology, funding access, and long-term policy clarity.
Founders and executives across AI, payments, fintech, knowledge services, and enterprise technology point to the need for Budget 2026 to strengthen research and development, improve funding mechanisms, and build sovereign digital capabilities that allow Indian companies to compete globally.

Varun Kashyap and Sridevi Reddy, Co Founders, Zithara AI, highlighted that while the India AI Mission has set the direction, deeper commitment is required to scale AI adoption across the ecosystem. They said the government’s allocation of over ₹10,300 crore over five years is a positive start but may not be sufficient to treat AI as core infrastructure rather than a niche technology. They emphasised the need for structured funding mechanisms that allow startups with proven performance to scale beyond early-stage support, as well as domestic investment in GPU infrastructure to reduce dependence on foreign technology.
Deepak Chand Thakur, Chairman and Managing Director, NPST, focused on the sustainability of India’s digital payments ecosystem, noting that with UPI processing over 228.3 billion transactions in 2025, the infrastructure supporting real-time payments requires predictable fiscal alignment. He stated that while the zero MDR framework has driven adoption and inclusion, rising transaction volumes and system complexity necessitate funding models that allow payment service providers to continue investing in security, reliability, and innovation. He added that calibrated MDR structures for high-turnover merchants or structured reimbursement frameworks could help maintain affordability while ensuring long-term resilience.

Bhavin Patel, Co Founder and Chief Executive Officer, Vartis Platforms, said the Budget presents an opportunity to deepen financial inclusion through regulatory stability and sustained investment in digital public infrastructure. He stated that policy encouragement for responsible AI adoption in regulated digital lending and P2P platforms can strengthen automation, fraud detection, and compliance. He also highlighted that improving access to lower-cost funds for NBFCs will be critical to expanding formal credit access across Bharat, while predictable tax policies and streamlined compliance can support innovation-led growth.
From the perspective of knowledge services and publishing, Sameer Kanodia, Managing Director and Chief Executive Officer, Lumina Datamatics Limited, said the upcoming Budget should sharpen its focus on strengthening AI-led digital infrastructure that underpins publishing, retail, and e-commerce ecosystems. He stated that targeted support for technology-enabled content production, research digitisation, and global content services exports can help Indian companies expand their role in the international knowledge economy, while investments in AI skills, automation, and cloud platforms will drive productivity and high-value employment.

Nandagopal P, Chief Executive Officer, Asymmetri, Chief Technology Officer, Gacsym Ventures and Limited Partner, Arya Ventures, said Budget 2026 represents a defining moment for India’s digital future. He stated that while digital public infrastructure has delivered scale and access, global leadership will now be determined by depth of compute, AI capability, R&D, cybersecurity, and talent. He added that the ₹1 lakh crore RDI Scheme is a timely step, but must be complemented by stronger R&D tax incentives, clear IP commercialisation pathways, and deep-tech venture funding to move innovation from lab to market at speed.
Chanakya Bellam, Board Member, AION Tech Solutions Limited, emphasised that future-ready technologies must be placed at the centre of national economic planning. He stated that strategic investments in artificial intelligence, machine learning, full-stack platforms, business intelligence, and cloud infrastructure are essential for sustained growth and global competitiveness. He added that proactive governance, public–private partnerships, large-scale skill development, and responsible innovation frameworks will be key to ensuring that AI-led transformation delivers inclusive growth and high-value jobs.

Together, these perspectives reflect a growing consensus across the technology ecosystem that Budget 2026 must move beyond incremental reforms and focus on building resilient digital foundations. Industry leaders believe that aligning AI, fintech, digital infrastructure, and skills development under a coherent policy framework will determine whether India emerges as a global technology leader or remains a scale-driven digital market

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