New Delhi, Jan. 30 -- With Finance Minister Nirmala Sitharaman set to present the Union Budget 2026-27 on February 1, technology sector leaders and government officials have outlined key expectations focused on AI infrastructure, data governance, regional digital expansion, and cybersecurity investments.

Sanjeev Kumar Gupta, CEO of Karnataka Digital Economy Mission (KDEM), has proposed the creation of dedicated digital economy zones in tier-2 and tier-3 cities, similar to the tax benefits that helped India's IT industry flourish two decades ago. He suggests each state identify 2-3 locations as digital economy zones, where companies would receive central and state tax benefits.

"Any company who set up operations in these digital economy ...