5 months ago
2
Industry lobby Confederation of Indian Industry (CII) connected Saturday (December 14, 2025) projected a broad acceptable of reforms for the forthcoming Union Budget 2026-27 to thrust sustained concern maturation crossed public, private, and overseas investments and to support India’s momentum arsenic 1 of the world’s fastest-growing large economies.
The CII suggested expanding Central superior expenditure by 12 per cent and capex enactment to States by 10 per cent successful FY27; launching a ₹150 lakh crore National Infrastructure Pipeline (NIP) 2.0 for 2026–32; offering incremental taxation credits oregon compliance relaxations for firms achieving important caller investment, production, oregon taxation publication milestones; and establishing an NRI Investment Promotion Fund.
It besides called for reinstating accelerated depreciation benefits to further incentivise caller superior expenditure and exertion upgrades, peculiarly for MSMEs and manufacturing industries, provided the measurement is structured to stimulate modernisation without triggering Minimum Alternate Tax (MAT) obligations.
Besides, CII urged strengthening the National Investment and Infrastructure Fund (NIIF) by forming a Sovereign Investment Strategy Council (SIFC) to align investments with nationalist priorities.
The Union Budget for the 2026-27 fiscal twelvemonth is expected to beryllium presented connected February 1, 2026.
According to CII, reinforcing fiscal stableness done an economic-cycle-based nationalist indebtedness framework, successful spot of inflexible yearly shortage rules, would heighten resilience by allowing counter-cyclical flexibility during planetary shocks and avoiding repeated breaches of yearly targets.
Such a model would fortify credibility by aligning fiscal argumentation with medium-term indebtedness sustainability, it said.
“The forthcoming Union Budget 2026-27 has to service the dual relation of stabiliser and maturation enabler, and promoting investments volition beryllium 1 of the astir captious components successful this regard,” CII Director General Chandrajit Banerjee said.
Towards this objective, CII has projected a broad concern strategy anchored successful fiscal prudence, superior efficiency, and capitalist confidence.
The recommendations emphasise strengthening nationalist superior expenditure arsenic the backbone of infrastructure-led growth, portion simultaneously unlocking backstage and overseas concern done targeted incentives, organization reforms, and enhanced planetary engagement.
Bolstering nationalist concern remains essential, CII said, noting that nationalist superior expenditure has been a cardinal operator of India’s post-pandemic recovery, catalysing infrastructure enlargement and crowding successful backstage capital.
To fortify task enactment and execution, CII projected institutionalising a Capital Expenditure Efficiency Framework (CEEF) to prioritise high-impact projects, way carnal and fiscal progress, and measure outcomes based connected productivity and determination spillovers.
Second, facilitating backstage concern volition beryllium the adjacent large priority.
While nationalist concern lays the foundation, backstage and overseas superior volition beryllium the existent accelerators of India’s transformation.
“The Government of India has provided a large request propulsion via income taxation alleviation successful past year’s Union Budget and precocious via GST 2.0. Investments, particularly backstage assemblage investment, volition beryllium the adjacent large operator for economical maturation that needs to beryllium focused connected successful the adjacent fiscal to proceed the maturation momentum,” Mr. Banerjee added.
In this context, incremental taxation credits oregon compliance relaxations for firms achieving important caller investment, production, oregon taxation publication milestones would promote reinvestment of profits into productive assets and the scaling up of capableness successful high-growth sectors specified arsenic cleanable energy, electronics, semiconductors, and logistics, CII said.
It suggested creating an NRI Investment Promotion Fund, structured arsenic a government-private holding institution with up to 49 per cent authorities stake, to transmission NRI, FPI, and organization investments into sectors specified arsenic infrastructure and artificial intelligence.
The money could rise superior done semipermanent convertible bonds benchmarked to FCNR rates, offering unafraid returns with equity upside, including peculiar India Global Diaspora Bonds, the manufacture assemblage said.
CII besides called for simplifying outer commercialized borrowing processes and providing higher borrowing limits, longer tenures, and partial hazard screen for infrastructure and manufacturing projects to amended entree to planetary superior portion maintaining outer sustainability.
A single-window clearance mechanics for ample FDI proposals, backed by dedicated facilitation cells astatine the Centre and successful States, with deemed support wrong 60 to 90 days, would present predictability, trim administrative delays, and accelerate ample investments, it said.
To deepen planetary capitalist engagement, CII recommended establishing an India Global Economic Forum arsenic a government-led level bringing unneurotic multinational corporations, sovereign wealthiness funds, pension funds, backstage equity firms, and different organization investors for structured dialog with elder authorities enactment connected emerging concern opportunities crossed sectors.
“An investment-driven maturation strategy, anchored successful fiscal credibility and organization reforms, volition specify India’s adjacent improvement phase,” Mr. Banerjee added.
