Indian VCs Share Reactions to Union Budget 2026
India’s Union Budget 2026–27, presented by Finance Minister Nirmala Sitharaman on 1 February 2026, has triggered a wide-ranging response from the nation’s startup and investment community. For the VC ecosystem, key areas of focus include the Budget’s emphasis on MSME growth funds and equity participation mechanisms, expanded opportunities in AI and semiconductor value chains, and measures affecting capital markets and liquidity. Here is the perspectives from leading VCs.
Saurabh Srivastava, Co-founder, IAN Group
"The government's long-term dedication to India's entrepreneurial environment is demonstrated by the inclusion of Rs.10,000 crore to the Fund of Funds. This action will increase early-stage finance and contribute to India's transformation into a globally competitive innovation hub by catalyzing capital through Alternative Investment Funds that have previously mobilized substantial investment."
"This goal is further strengthened by the Rs.2,000 crore increase to the Self-Reliant India (SRI) Fund, which supports scale-up, job creation, and the transformation of local businesses into robust, internationally competitive enterprises."
Also Read: Budget 2026: Investing in Growth, Resilience & Digital Growth
Sunil K Goyal, Managing Director and Fund Manager, YourNest VC
"The recent investment into the Fund of Funds is a much-needed strategic catalyst for the startup ecosystem. It will encourage growth across technology, DeepTech, and high-potential sectors, and will make risk finance more available to founders. We expect this fresh emphasis on infrastructure funding to boost domestic investment, and increase the chances for scale-ups to succeed."
Also Read: Republic Day 2026: Indian MSME's Powering National Development
Ranjeet Shetye, DeepTech investor, Mentor, YourNest VC
"The Budget makes it clear that innovation-led entrepreneurship is essential to India's next stage of development by establishing a new Fund of Funds with a larger scope and a sizable new commitment."
"By luring institutional money into early-stage companies, this strategy not only gives businesses a much-needed fundraising runway but also enhances the venture ecosystem as a whole."
Also Read: Union Budget 2026: Finance Leader Share Budget Expectations
Padmaja Ruparel, Co-founder, IAN Group
"Whether through nation-building industries or prolonged tax exemptions over the next five and twenty-two years, this forward-looking budget indicates policy continuity and long-term vision. The SHE program's emphasis on female entrepreneurs, which addresses systemic access to opportunity and funding, is especially encouraging. A focus on India's strategic imperatives is also reflected in the enhanced semiconductor mission. The Budget closely aligns with IAN Alpha Fund's strategy of supporting companies and technology essential to India's strategic and economic growth by matching long-term catalytic financing with these priorities.”