Union Budget 2026–27: Enabling Scalable and Trusted Fintech Platform

As India deepens its shift toward a digital-first financial ecosystem, the Union Budget 2026–27 plays a defining role in shaping how technology, policy, and institutional trust converge. At this stage of the country’s fintech evolution, the focus must move from adoption alone to building platforms that can scale responsibly, compete globally, and earn long-term confidence.
 
Policy Watch, CII’s flagship publication, brings together perspectives from industry leaders to inform national economic and technology priorities. The January edition, focused on CII’s recommendations for the Union Budget 2026–27, reflects a shared intent to strengthen India’s digital and financial foundations through forward-looking policy.
 
As part of this dialogue, Mr. Parag Bhise, CEO & Executive Director, Nucleus Software, shares a perspective on how taxation and compliance frameworks can enable financial institutions to modernise with confidence. He underscores the need to rationalise taxation on digital infrastructure, AI, and cloud-native platforms, supported by incentives for R&D, domestic IP creation, and export-oriented software – key to building fintech platforms that can scale globally, while streamlined compliance allows enterprises to stay focused on innovation and trust.

“As India accelerates toward a digital-first financial economy, the Union Budget 2026–27 presents an opportunity to strengthen the taxation framework in a way that catalyses innovation, boosts technology adoption, and encourages global scale. Rationalising taxation on digital infrastructure investments, AI adoption, and cloud-native platforms will empower financial institutions to modernise at speed. Incentives for R&D, domestic IP creation, and export-oriented software products can position India as a global provider of fintech platforms, not just a consumer. We also hope to see simplified compliance processes for digital businesses, enabling enterprises – large and small – to focus on innovation over administration. A future-ready tax regime can play a pivotal role in propelling India’s ambition to become the world’s trusted hub for financial technology.”