The Union Budget 2026–27 is a forward-looking and confidence-building Budget that reflects the Government’s strong commitment to next generation reforms, sustaining high economic growth while maintaining macroeconomic stability. At a time of heightened global uncertainty, the Budget sends a reassuring signal of continuity, credibility, confidence and long-term vision for India’s development journey.
CII welcomes the Government’s continued focus on fiscal prudence alongside growth support. The fiscal deficit target of 4.3 percent of GDP for FY27 is well aligned with the glide path recommended by CII and reinforces confidence in India’s macroeconomic management. There is broad recognition on fiscal discipline, including adherence to the debt-to-GDP glide path to reach 50% of GDP by FY31— balanced with flexible policy calibrated to economic realities. This calibrated approach balances the need for fiscal consolidation with the imperative of sustaining economic momentum, which is critical in the current global environment.
From an industry perspective, the continued thrust on capital expenditure is one of the most reassuring features of the Budget. The increase in public capex to ?12.2 lakh crore, with effective capital expenditure exceeding Rs17 lakh crore, will play a vital role in crowding in private investment, strengthening infrastructure and improving productivity across sectors. The focus on high-quality infrastructure through new freight corridors, expansion of inland waterways, high-speed rail networks and the proposed infrastructure risk guarantee framework will significantly enhance logistics efficiency and reduce the cost of doing business.
The Budget also reflects a clear and strategic intent to strengthen India’s manufacturing ecosystem. The emphasis on sectors such as semiconductors, biopharma, chemicals, capital goods, textiles, sports goods, critical minerals and electronics is timely and aligned with India’s ambition to emerge as a global manufacturing hub. Measures such as the expansion of the India Semiconductor Mission, support for critical minerals, and rejuvenation of industrial clusters will help deepen domestic value chains, strengthen self-reliance and enhance export competitiveness.
CII particularly welcomes the strong focus on MSMEs, which remain the backbone of India’s economy. Initiatives such as the Rs 10,000 crore SME Growth Fund, enhanced credit support through TReDS, linking of GeM with TReDS, and simplified compliance mechanisms will improve access to finance, encourage formalisation and boost the competitiveness of smaller enterprises. These measures are critical for employment generation and inclusive growth.
The emphasis on ease of doing business and trust-based governance is another positive feature of the Budget. The move towards risk-based customs clearance, greater digitisation, reduced compliance burden and enhanced regulatory certainty will improve India’s investment climate and support faster execution of projects. The proposed High-Level Committee on Banking for Viksit Bharat is a timely initiative to ensure the financial sector is well prepared to meet the funding needs of a rapidly growing economy.
The Budget also places strong emphasis on employment generation and human capital development. Initiatives covering education, skilling, healthcare, tourism, creative industries and services will help create quality jobs across the economy. The focus on university townships, skill-linked education, healthcare infrastructure, and emerging sectors such as AVGC and medical tourism reflects a long-term vision for building a future-ready workforce.
Equally significant is the strong commitment to sustainability. The allocation for carbon capture, green freight corridors, clean energy and environmentally sustainable infrastructure demonstrates India’s resolve to pursue growth that is both resilient and responsible.
Overall, the Union Budget 2026–27 strikes a fine balance between fiscal discipline, growth-oriented public investment, structural reforms and employment generation. It reinforces India’s position as one of the world’s most attractive investment destinations and provides a strong platform for industry to partner with Government in advancing the vision of a Viksit Bharat. CII looks forward to working closely with all stakeholders to support effective implementation and accelerate India’s growth momentum.