Budget 2026: Edtech and Adtech Push for Policy Support to Drive AI-Led Growth

As preparations intensify for Union Budget 2026, companies operating in the edtech and adtech ecosystem are calling for targeted policy interventions to accelerate artificial intelligence–led growth, improve access to digital learning, and strengthen India’s rapidly expanding digital economy.

Industry stakeholders say artificial intelligence has moved from being an experimental add-on to a core driver of innovation across education technology and digital advertising. With AI-enabled platforms increasingly shaping learning outcomes, employability and consumer engagement, expectations from Budget 2026 are centred on regulatory clarity, infrastructure investment and skill development incentives.

AI-LED TRANSFORMATION IN DIGITAL EDUCATION

The edtech sector has witnessed sharp growth in AI-driven language learning and skill development platforms, particularly beyond India’s major urban centres. Platforms focused on vernacular users have seen rising adoption among learners from regional language backgrounds, as AI-powered tools enable personalised, scalable and cost-effective education delivery.

Industry leaders believe that policy recognition of digital education as a critical pillar of workforce development could significantly expand access in underserved and remote regions. Support for the creation of high-quality regional content, improved internet connectivity and incentives for online skilling initiatives is being viewed as essential to close learning and employability gaps.

Stakeholders argue that AI-first learning platforms can play a transformative role in improving communication skills, vocational readiness and job mobility, particularly among first-generation learners. Budgetary measures that encourage innovation in this space could help align India’s education ecosystem with future labour market needs.

ADTECH EXPECTATIONS FROM TAX AND POLICY CLARITY

Alongside education technology, the digital advertising sector is also closely tracking Budget 2026 for signals that could influence consumer demand and business confidence. Adtech companies say even incremental reforms in taxation that enhance disposable income can have a cascading effect on digital spending across e-commerce, local services and online marketplaces.

AI-powered advertising platforms are increasingly being used to optimise targeting, measure returns on investment and respond to rapidly shifting consumer behaviour. Clear and predictable policy frameworks, industry leaders say, are essential for sustaining innovation and long-term growth in this data-driven ecosystem.

Tax certainty, simplified compliance norms and a stable regulatory environment are being cited as key enablers that could help brands and advertisers increase digital outreach while supporting India’s broader digital transformation goals.

NEED FOR A COORDINATED POLICY APPROACH

Across both edtech and adtech, there is a shared expectation that Budget 2026 will adopt a forward-looking approach to artificial intelligence. Industry voices emphasise that AI policy should not be viewed in isolation but as part of a coordinated strategy involving education, employment, infrastructure and digital commerce.

With India positioning itself as a global digital economy leader, stakeholders believe that timely policy support can help domestic platforms scale responsibly while ensuring inclusive growth. Investments in digital infrastructure, skill development and AI research are being seen as crucial to maintaining global competitiveness.

As policymakers finalise the contours of Budget 2026, companies across the edtech and adtech spectrum are hoping for measures that strike a balance between innovation, accessibility and sustainability—laying the foundation for long-term AI-led economic growth.