Australia just released its federal budget, laying out a proposed roadmap ahead of a national election. India’s Union Budget, tabled last month, comes from a government now in its third consecutive term — and builds on years of momentum in digital transformation and inclusive innovation.
In a world defined by economic shifts, climate urgency, and accelerating technology, how nations allocate capital to innovation, infrastructure, and capability is telling. These two budgets, read side by side, offer a glimpse into how Australia and India are writing their next chapter.
As someone who has had a front-row seat to the evolving relationship between India and Australia through my role as Convenor of the Australia India Chamber of Commerce (AICC) Tech & Innovation National Industry Group, and as Director of The Big LEAP Accelerator, I’ve seen the potential for cross-border economic and innovation alignment grow stronger every year.
The 2025–26 federal budgets presented by both countries are not just routine fiscal documents; they are a declaration of how each nation intends to navigate the decade ahead.
Budget Signals at a Glance
| Theme | 🇦🇺 Australia | 🇮🇳 India |
| Innovation Funding | $1.5B Innovation Fund, $2B CEFC boost | ₹10,000 cr Deep Tech Fund (~AUD 1.8B) |
| Climate & Clean Tech | $13.7B tax incentives, $750M green metals, $1B Green Iron Fund | Bio-manufacturing policy, EV battery relief |
| Capital Access | No startup mention, indirect via investor reforms | Angel tax abolished, FoF expanded, MSME micro-credit |
| Talent & Education | Free TAFE, uni reform ($2.5B) | PM Fellowships, Digital India skilling |
| Frontier Tech Focus | Not detailed | AI Safety Institute, Quantum, Geospatial Missions |
| Productivity Reform | $900M National Productivity Fund; SME procurement target (35%) | Ease of doing business, manufacturing support |
Australia’s budget is a strategic play for long-term competitiveness. While it lacks specific measures targeted at startups or early-stage innovation, it sets a structural foundation for economic resilience and green industrial leadership. The government has proposed a $1.5 billion Future Made in Australia Innovation Fund, alongside a $2 billion expansion of the Clean Energy Finance Corporation.
A $13.7 billion commitment in legislated production tax incentives for hydrogen and critical minerals, $750 million earmarked for green metals, and a $1 billion Green Iron Investment Fund underscore the country’s ambition to decarbonise heavy industry. Add to that the $900 million National Productivity Fund and a new SME procurement target of 35% on contracts up to $20 million, and the message is clear: this is a budget about building capacity, not headlines.
India’s Union Budget continues a multi-year momentum to deepen its innovation economy. From the abolition of the angel tax for early-stage investors that will ease access to capital for startups to the ₹10,000 crore (~AUD 1.8B) Deep Tech Fund of Funds, the country is not only expanding funding options but simplifying the rules of engagement for entrepreneurs.
Credit guarantee schemes, a dedicated scheme for first-time entrepreneurs, and support for MSMEs, including micro-credit, reflect a model of inclusive innovation. Meanwhile, institutional initiatives like the AI Safety Institute, National Quantum Mission, and the National Geospatial Mission signal intent to lead in frontier technologies.
India’s green agenda is also evolving. Bio-manufacturing incentives, EV battery duty relief, and expansion of its national gene bank show a systemic approach to sustainability that encompasses agriculture, mobility, and energy.
India and Australia aren’t on parallel tracks — but they are facing in the same direction. One is leveraging scale and digital momentum; the other, stability and reform. India’s budget moves fast and broad; Australia’s moves deep and deliberate.
The common thread? A clear focus on economic sovereignty, future-proofed industries, and innovation as a core lever of national strategy.
For the Indian diaspora living and working in Australia, this is more than fiscal policy. These budgets influence the industries we work in, the investments we make, and the collaborations we foster across borders. Whether you’re in tech, education, research, or advanced manufacturing, this is a moment to reflect on how interconnected these two economies have become.
India’s domestic innovation runway is stronger than ever. For entrepreneurs seeking to scale globally, Australia offers a strategic landing zone. With its research depth, export readiness, and appetite for clean, high-impact technology, it remains a compelling market for Indian ventures in sectors like climate tech, agrifood, health, and advanced manufacturing.
The corridor is open. The opportunity is mutual.
Budgets may be annual, but their impact is immediate and signals are generational. In reading these two documents side by side, the most important takeaway isn’t what was spent — it’s what is being built.
India and Australia may be writing different chapters, but they’re part of the same story: one where innovation isn’t an outcome, but a national instrument.
Author: Jasmine Batra is the Director of The Big LEAP Accelerator, supporting cross-border innovation between Australia and India, helping startups with international market expansion.
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