Industry stakeholders highlighted the need for a stronger emphasis on domestic manufacturing and the ‘Make in India’ initiative in the upcoming Union Budget 2026-27, as per a survey by the Associated Chambers of Commerce and Industry of India (Assocham). The survey revealed that 55% of respondents are optimistic about business prospects in the next year, with 32% neutral and 13% pessimistic. Priorities include boosting domestic manufacturing, supporting MSMEs, and simplifying tax and compliance systems.
Infrastructure development, skills enhancement, and digital growth were also key expectations from the budget, according to the industry survey. Participants stressed the importance of cheaper capital, increased credit availability, and targeted tax incentives for technology upgrades and AI adoption to spur manufacturing growth. Suggestions included expanding PLI schemes, offering tax incentives for Industry 4.0, and streamlining customs duties on essential raw materials.
The survey highlighted the critical link between manufacturing growth and MSME health, with 55% of respondents being MSMEs themselves. Challenges such as delayed payments and working capital shortages were identified, underscoring the need for cash-flow-based lending, credit linked to GST data, and incentives for prompt payments. The budget should focus on execution-oriented reforms, simplified compliance frameworks, and fiscal incentives to drive private investment and support MSMEs.
Respondents also raised concerns about complex TDS and TCS provisions, noting the burden they impose. Many felt that the new Income Tax Act, 2025, may not fully achieve its goals of simplification and certainty. The industry calls for a more conducive tax environment to facilitate growth and ease compliance burdens.
