Pre-Budget 2026 expectations: TrueReach AI & Covasant Technologies
TrueReach AI
“As India stands at the cusp of an AI revolution, the upcoming Union Budget must pivot from viewing AI as a mere software vertical to treating it as strategic national infrastructure, akin to power or telecom. At TrueReach AI, our expectation is a budget that transitions India from an AI consumer to a global innovation hub.
First, to bridge the R&D gap—where India’s 0.7% GDP spend lags the 1.93% global average—we urge the restoration of the 200% weighted deduction for R&D. This is vital for deep-tech startups facing long-gestation cycles. Furthermore, democratizing AI requires a national ‘Compute Credit’ scheme and a 3-5 year customs duty holiday on critical hardware like GPUs and TPUs. Without affordable access to the ‘physical’ backbone of AI, Indian startups remain at a competitive disadvantage.
Capital remains the third pillar. Accelerating the ₹20,000 crore Deep Tech Fund of Funds will provide the patient, long-term capital necessary to build foundational models. We also hope to see the PLI scheme extended to AI and Robotics, incentivizing domestic IP over foreign licensing.
Finally, we must solve for ‘Data and Talent.’ Establishing a structured India Dataset Platform for anonymized data and offering tax incentives for corporate upskilling are non-negotiable if we are to meet the demand for 1 million AI professionals by 2026. By simplifying compliance through a single-window system, the government can empower founders to focus on building world-class technology rather than navigating regulatory hurdles”
Amit Kumar Tyagi, CEO, TrueReach AI
Covasant Technologies
“As AI adoption accelerates globally, we hope the Union Budget 2026–27 takes a forward-looking view on enabling next generation agentic AI companies from India. Access to affordable high performance AI infrastructure will be critical, especially for firms building autonomous systems that require significant GPU capacity to scale responsibly and compete globally. Targeted R&D tax credits and accelerated depreciation for AI hardware would significantly strengthen India’s innovation ecosystem.
We would also welcome the creation of regulatory sandboxes and clearer liability and data flow frameworks to enable companies to test autonomous agents in a controlled and compliant manner. Finally, public procurement opportunities for Indian AI firms, export incentives, and AI upskilling programs can help position India as a global hub for enterprise grade Agentic AI.”
Srikanth Chakkilam, CEO and Executive Director, Covasant Technologies