In a pre-budget survey conducted by FICCI, industrialists expect employment, manufacturing, defense, micro, small and medium-sized enterprises (MSMEs), and exports to be prioritized in Budget 2026-27. Fifty percent of industrialists expect GDP growth to be 7–8%.
Budget 2026: The industry is already excited for the Union Budget 2026-27. A recent pre-budget survey by FICCI revealed that nearly 80 percent of industrialists are confident about the country’s economic growth. Nearly half, or 50 percent, believe India’s GDP growth will be between 7 and 8 percent in the next fiscal year. They say that no matter how turbulent global economic conditions become, India’s fundamental economic strength remains intact.
Fiscal Deficit and Economic Stability
The survey also found positive signs regarding the fiscal deficit. Approximately 42 percent of industrialists believe the government will meet its target of 4.4 percent GDP in FY26. This clearly indicates that the industry has confidence in the government’s economic policies and budget management.
Three main demands of the industry
The industry’s key expectations from the budget center on three points: first, boosting job creation to create more jobs. Second, continuing emphasis on infrastructure development. Third, providing better support and facilities to strengthen exports.
Boost to the manufacturing sector
To encourage manufacturing, industrialists have called for increased capital expenditure. A large industrial cluster has been suggested for the electronics sector, which would house OEMs (Original Equipment Manufacturers), EMS (Electronics Manufacturing Services), and component suppliers in one location. This would strengthen the entire electronics ecosystem and accelerate industry growth in the country.
Investment in defense manufacturing
To promote technological advancement and self-reliance in the defense sector, a 30% increase in the capital budget has been called for. Special budget allocations are needed for new technologies such as UAVs, counter-UAVs, electronic warfare, and AI-based technologies. Additionally, a provision of ₹1,000 crore for the Drone PLI Scheme and a separate ₹1,000 crore for the Drone Research and Development Fund has been recommended.
Export policy needs improvement
Tariff uncertainty in global trade, regulations such as CBAM and deforestation have increased challenges for exporters. To address this, there is a need to simplify and improve export policies, streamline customs and trade processes, and reduce logistics and port delays. The industry has suggested increasing funding for the Roadmap scheme, improving the SEZ policy, and restructuring customs tariffs into three standard rates.
Demand for reforms in direct taxes
Industrialists expect three major changes in direct taxation. First, simplifying online tax reporting. Second, providing taxpayers with more certainty about results. Third, improving the system for faster resolution of disputes and litigation. Furthermore, there is also an emphasis on corporate restructuring and simplifying services for investors.
Focus on small and medium enterprises (MSMEs)
The industry is demanding that the government further strengthen the MSME sector. Special provisions are expected for this sector in the budget. Small and medium-sized enterprises play a vital role in job creation, exports, and economic growth.
Continued emphasis on infrastructure
Industry believes the budget should focus on infrastructure. Increasing investment in road, rail, port, and air connectivity will not only create jobs but also boost production and export potential.
Industry’s hope in Budget 2026-27
Industrialists surveyed clearly stated that they want the government to prioritize economic growth, employment, manufacturing, defense, micro, small and medium-sized enterprises (MSMEs), and exports. They believe that if these sectors receive the right investment and policy support, India will emerge from a stronger position in global competition.
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