Union Budget 2026, Ola Slips, and Wow! Momo Staff Arrested

India’s Union Budget 2026 is not a populist budget. It is a builder’s budget. It marks a consequential shift in India’s economic strategy - from selling services to building systems. The government is no longer just financing roads and railways; it is underwriting the scaffolding of artificial intelligence, semiconductors, and energy sovereignty. For founders and investors, this is a signal that the next decade will reward execution in hard, slow sectors rather than fast consumer plays.

The macro frame is disciplined: a fiscal deficit target of 4.3%, capex at ₹12.2 lakh crore, and a debt-to-GDP glide path toward 50%. But the deeper story is where the money is pointed. The ₹1 lakh crore RDI Fund and the ₹500 crore AI Centre of Excellence reorient India’s AI ambition away from wrapper startups toward vertical, domain-specific systems such as agriculture, healthcare, manufacturing, public administration. This is not about competing with OpenAI. It is about embedding AI into India’s productive base. Startups building applied intelligence rather than generic models will find a rare alignment of capital and policy.

Semiconductors follow the same logic. ISM 2.0 moves India beyond assembly into materials, components, and chip design. The ₹40,000 crore Electronics Components Manufacturing Scheme plugs the midstream gap - PCBs, displays, battery enclosures - where India has historically been dependent on imports. This is industrial policy with venture implications: hardware-light startups that own IP but outsource fabrication suddenly become viable. Manufacturing-as-a-service is no longer a thought experiment; it is a state-backed thesis.

Tax policy is quieter but no less structural. The abolition of Angel Tax and expansion of ESOP deferral to all DPIIT-registered startups changes founder psychology. Liquidity can be delayed without penalty. Predictable capital gains rates - 12.5% long term, 20% short term - replace incentives with certainty. Transfer pricing safe harbour is rationalised to a single 15.5% margin, collapsing years of litigation risk for SaaS and GCCs into a rulebook. This will unlock trapped cash in captive R&D centres and tilt more capital into B2B software.

Sunrise sectors reveal where the state sees strategic value. The “Orange Economy” formalises animation, gaming, and creative IP as industrial assets, not cultural side projects. Talent pipelines, labs in schools, and export framing point to a future where companies like Nazara and Dream11 are expected to build franchises, not just platforms. On energy, carbon capture, small modular nuclear reactors, and critical minerals form a stack of long-duration bets. EVs benefit from duty exemptions on lithium and cobalt scrap, while recyclers and mineral recovery startups gain a government-backed market.

GTM infrastructure completes the picture. Bharat VISTAAR aims to make agritech AI a public utility. Tier-2 city clusters and high-speed rail corridors redraw startup geography. DPI 2.0 pushes broadband into schools and health centres, shifting moats from access to outcomes.

Yet the absences matter. Reverse flipping remains complex. Press Note 3 on Chinese capital stays ambiguous. GST relief for edtech and telecom is skipped. A ₹10,000 crore SME fund hints at a pivot toward profitability over unicorn hunting.

This budget rewards builders over speculators. It favours patient capital, vertical SaaS, deep tech, and hardware integration. Consumer startups will survive, but they are no longer the state’s priority. India is betting that sovereignty compounds better than virality.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Sandese Aate Hai”: Union Budget 2026 For Indian Tech & Startups

Union Budget 2026 signalled a broad-based push to position India as a global hub for manufacturing, services and deeptech, with strong emphasis on AI, the data centre economy and industrial capacity building.

While Finance Minister Nirmala Sitharaman mentioned startups only in passing during her 90-minute address, the policy thrust is expected to indirectly benefit the Indian tech and startup ecosystem through downstream demand, infrastructure creation and innovation-led growth.

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“Ye Kathin Drishya Hai”: TVS Continues Lead In E2W Registrations, Ola Electric Slips And Is Set To Fire 5% Of Its Workforce

E2W registrations rose 19.1% MoM to 1,16,707 units in January, with TVS Motor Company strengthening its lead after a 32% jump and Bajaj Auto posting 27% growth.

While Ola Electric saw sales slide 20% MoM to 7,221 units and announced a 5% workforce cut as part of a renewed turnaround and automation push.

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“Ye Andha Kanoon Nahi Hai”: Wow! Momo Staff Arrested In Kolkata Warehouse Fire Case

Two employees of QSR chain Wow! Momo have been arrested by West Bengal Police in connection with a deadly warehouse fire in Kolkata, with those detained identified as a warehouse manager and a deputy manager.

Investigators are probing alleged safety and operational lapses, with officials suspecting the blaze originated at a neighboring warehouse before spreading to the Wow! Momo facility.

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“Aaiye Aapka Intezaar Tha”: Meet The Five Startups Part Of Maruti Suzuki’s Incubation Program

Maruti Suzuki has onboarded five startups, AugurAI, Aatral, Zen Mobility, Indus Vision and Proxgy, into its Incubation Program under the Maruti Suzuki Innovation umbrella.

The cohort has been inducted in partnership with NSRCEL at IIM Bangalore, with the automaker set to award Proof-of-Concept projects to enable real-world pilots, validation and potential scale-up across its mobility and manufacturing ecosystem.

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“Zara Nazar Milao Umrao Jaan”: Groww Bids To Acquire PGIM India AMC To Strengthen AMC Unit

Groww has emerged as a bidder to acquire PGIM India AMC, competing with Edelweiss Asset Management for the loss-making fund house owned by Prudential Financial.

PGIM is looking to exit the business after limited growth since acquiring it from Deutsche Bank AG nearly a decade ago, while for Groww the deal would mark a strategic expansion beyond its core broking and mutual fund distribution play.

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“Jab Miya Bibi Ho Raazi”: Dronetech Startup AITMC Receives SEBI Nod For IPO

Dronetech startup AITMC has received approval from SEBI for its IPO, with the regulator clearing the company’s confidential DRHP filed in October last year.

The firm plans to raise ₹200 Cr through a fresh issue of shares, marking its second attempt at going public after earlier listing and merger plans failed to take off.

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“Watan Mera India, I Love My India”: IPO-Bound MoEngage Gets NCLT Nod For Reverse Merger

IPO-bound MoEngage has secured approval from NCLT for a reverse merger under which US-based MoEngage Inc will be merged into its Indian arm, transferring all assets, liabilities and operations to MoEngage India.

The move aligns with reports of the company shifting its headquarters to India ahead of a potential D-Street listing.

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1. Spring Marketing Capital has launched a ₹500 Cr fund to back growth-stage startups, with strong backing from existing LPs and a first close of ₹150 Cr expected by March. Founding partner Raja Ganapathy said the fund will mirror its 2019 debut vehicle by targeting post-PMF startups.

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2. JJG Aero has raised ₹275 Cr in a Series B round led by Norwest to scale manufacturing and deepen vertical integration. The fresh capital will fund a new facility in North Bengaluru and strategic initiatives, coming after a $12 Mn raise from CX Partners in April 2024.

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