Budget 2026: India Inc upbeat on growth; jobs, infra and exports top industry wish list, says FICCI

India Inc remains upbeat about the country’s economic growth prospects ahead of the Union Budget 2026–27, with nearly 80 per cent of industry respondents expressing confidence in the outlook, according to the Federation of Indian Chambers of Commerce and Industry’s (FICCI) Pre-Budget Survey 2026–27.

GDP growth to remain upto 8%

About 50 per cent of respondents expect India’s GDP growth to remain in the range of 7–8 per cent in FY27, reflecting confidence in the economy’s medium-term fundamentals despite global uncertainties. The survey also highlighted industry’s support for fiscal discipline, with around 42 per cent of participants expecting the government to achieve its fiscal deficit target of 4.4 per cent of GDP in FY26, in line with the fiscal consolidation roadmap.

Add Zee Business as a Preferred Source

Key macro priorities for Union Budget 2026–27

The survey identified job creation, a sustained push on infrastructure, and stronger support to exports as the key macroeconomic priorities for the upcoming Budget. Sectors such as infrastructure, manufacturing, defence and MSMEs are expected to remain in focus, as per industry respondents.

Manufacturing, electronics and defence in focus

Industry stressed the need to continue prioritising manufacturing and capital expenditure. FICCI highlighted the importance of setting up a mega electronics industrial cluster to co-locate original equipment manufacturers (OEMs), electronics manufacturing services (EMS) firms and component suppliers, to further strengthen the electronics ecosystem.

Defence manufacturing needs a capital outlay increase to 30 per cent because defence funds require modernisation support for equipment, which includes UAVs, counter-UAV systems, electronic warfare systems and AI-enabled capabilities. The survey recommended increasing the Drone Production-Linked Incentive (PLI) outlay to Rs 1,000 crore and creating a Rs 1,000 crore Drone R&D Fund.

Export competitiveness amid global trade challenges

The survey demonstrated that the external sector required better export policy support because global trade disputes and tariff uncertainty, and non-tariff barrier regulations, which included the Carbon Border Adjustment Mechanism (CBAM) and deforestation-related regulations, were increasing.

Respondents requested that trade facilitation and customs processes should become more efficient, while logistics and port-related delays needed to be eliminated, and export incentives with refund systems should be strengthened.

The survey recommended higher allocations under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. The survey recommended that the Special Economic Zone (SEZ) policy undergo reforms, which would result in better customs tariff management through the elimination of the current tariff rate systems. The survey recommended that customs tariffs should undergo rationalization which would create three standard rate tiers to achieve better compliance and predictability.

Direct tax reforms and dispute resolution

The survey also said that the direct tax system required three main changes. The first requirement for direct tax systems is to establish a system which allows for online tax reporting. The second requirement is to provide taxpayers with assured tax outcomes. The third requirement is to develop better systems for handling disputes and managing litigation. The corporate restructuring field and investor services section need to facilitate organisations according to the respondents' requirements.