The Confederation of Indian Industry (CII) expressed approval of the Union Budget 2026-27, citing its next-generation reforms that instill confidence and its emphasis on public capital expenditure to spur private investment. CII appreciated the government’s commitment to fiscal prudence, highlighting the fiscal deficit target of 4.3% of GDP for FY27 as a positive signal for India’s economic management. The industry body noted the budget’s focus on maintaining fiscal discipline and the debt-to-GDP glide path to reach 50% by FY31, coupled with adaptable policies in response to economic conditions.
The budget’s allocation of Rs 12.2 lakh crore for public capital expenditure, with total effective capital expenditure surpassing Rs 17 lakh crore, is expected to attract private investment, bolster infrastructure, and enhance productivity across various sectors, according to CII. Chandrajit Banerjee, Director General of CII, remarked that amidst global uncertainties, the budget signifies continuity, credibility, confidence, and a long-term vision for India’s development trajectory. Additionally, the budget’s initiatives for high-quality infrastructure, including new freight corridors, inland waterway expansion, high-speed rail networks, and an infrastructure risk guarantee framework, are anticipated to enhance logistics efficiency and reduce business costs significantly.
CII also commended the budget’s focus on key sectors such as semiconductors, biopharma, chemicals, capital goods, textiles, sports goods, critical minerals, and electronics, aligning with India’s aspirations to become a global manufacturing hub. The expansion of the India Semiconductor Mission, support for critical minerals, and revitalization of industrial clusters are seen as measures to strengthen domestic value chains, promote self-reliance, and boost export competitiveness. Furthermore, the industry body welcomed the budget’s robust support for Micro, Small, and Medium Enterprises (MSMEs), including the Rs 10,000 crore SME Growth Fund, enhanced credit assistance through TReDS, and simplified compliance procedures aimed at facilitating finance access and formalization.
CII also praised the budget’s initiatives to improve the ease of doing business, such as risk-based customs clearance, enhanced digitization, reduced compliance burdens, and increased regulatory certainty, which are expected to enhance the investment environment and expedite project implementation.
