CII outlines investment roadmap; calls for capex and policy reforms in Budget 2026–27

India's future economic growth will rely on consistent and robust investments through public, private and foreign channels, according to the Confederation of Indian Industry (CII). In an official release, CII presented a comprehensive plan for the Union Budget 2026-27, asserting that the Budget needs to play the dual role of a stabiliser and a growth driver.

CII Director General Chandrajit Banerjee emphasised that the new Budget should primarily focus on boosting investments to keep India's growth steady. He pointed out that the public expenditure had been a key factor in propelling the country’s post-pandemic recovery, and that for the time being, it would help India stay among the fastest-growing major economies.

CII roadmap for Budget 2026-27

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The CII has recommended that the government increase central capital expenditure for public sector development by 12 per cent and raise support for the states by 10 per cent in fiscal year 2027.

It said that the money should be allocated mainly to those sectors where the highest impact would be created by the government spending, such as transportation, energy, logistics, and the green transition.

CII also proposed the establishment of a Capital Expenditure Efficiency Framework that would facilitate the selection of priority projects, their follow-up, and the evaluation of their results in a more transparent manner.

Moreover, it suggested the launching of a new Rs 150 lakh crore National Infrastructure Pipeline for 2026-32 to provide long-term clarity to investors and states in conjunction with this.

The release also mentioned that a more flexible fiscal policy is required for India. CII proposed shifting from rigid yearly deficit regulations to a debt framework that adjusts with economic cycles. It explained that this would let the government respond better during shocks while maintaining stability in the long run.

CII also pointed out that private investment is the case where India now needs strong momentum from businesses to support growth.

"The Government of India has provided a big demand push via income tax relief in last year's Union Budget and recently via GST 2.0. Investments, especially private sector investment, will be the next big driver for economic growth that needs to be focused on in the next fiscal to continue the growth momentum," Banerjee said.

The CII put forward tax credits or relaxation in compliance for companies that raise their investments or increase their production, and at the same time, suggested bringing back accelerated depreciation to support firms, mainly MSMEs, in their upgradation.

To attract long-term global capital, the CII suggested the establishment of a Non-Resident Indian (NRI) Investment Promotion Fund with the partial ownership of the government. The fund is to be created for the purpose of directing NRI and foreign institutional money towards sectors such as infrastructure and artificial intelligence.

Furthermore, CII proposed the strengthening of the National Investment and Infrastructure Fund through the formation of a new Sovereign Investment Strategy Council, which would be responsible for directing investments.

The CII also recommended the simplification of the external borrowing norms and the implementation of a single-window system for large foreign investment proposals to minimise the time taken and maximise the certainty. It also made a recommendation for the setting up of an India Global Economic Forum, where structured dialogues between the world investors and government decision-makers would take place.

"An investment-driven growth strategy, anchored in fiscal credibility and institutional reforms, will define India's next development phase," Banerjee said.

With ANI inputs