Charting Growth for India’s Future: What Industry Wants from Budget 2026–27
As India gears up for the presentation of the Union Budget 2026–27 on February 1, 2026, expectations from businesses across sectors are taking center stage. The Federation of Indian Chambers of Commerce and Industry (FICCI) — one of India’s oldest and largest industry associations — has recently released its pre-budget survey, outlining priorities that corporate India wants the government to address in the upcoming budget cycle.
At the heart of these expectations are three broad themes: job creation, a continued and sustained push on capital expenditure (capex), and stronger support for exports. Beyond these macro priorities, industry players have also flagged various sectoral demands, ranging from simplified tax regimes to ease of doing business reforms, and from infrastructure facilitation to innovation incentives.
This article offers a comprehensive look at what the survey findings tell us, the broader economic context behind these expectations, why they matter to ordinary citizens and businesses, and what the future might hold once Budget 2026 is unveiled.
India’s Economic Context: Growth, Challenges and Opportunities
India’s economy has been on a trajectory of steady expansion over recent years. Despite global headwinds and geopolitical uncertainties that have impacted trade and investment flows worldwide, India has managed to sustain relatively high growth rates compared with most major economies. According to independent surveys, a majority of corporate leaders expect India’s GDP to grow in the vicinity of 6.5–8% in 2026–27, a figure that reflects continued optimism even amidst external risks.
This positive sentiment among business leaders is rooted in several strengths:
- A large domestic market with rising consumption demand.
- Government initiatives to promote manufacturing, digital economy and infrastructure development.
- Progressive trade and industry policies aimed at integrating India into global value chains.
Nevertheless, challenges remain. Private investment, especially in manufacturing and capital goods sectors, has historically lagged expectations due to factors like weak demand visibility, high borrowing costs, and regulatory uncertainties. These conditions have made budgetary policy — particularly fiscal incentives, tax reform and capex planning — critically important as tools for bolstering business confidence.
Jobs: The Human Face of Economic Growth
One of the most pressing concerns underscored by India Inc in the FICCI survey is job creation. In an economy with a youthful population and an expanding labor force, generating quality employment continues to be a central objective for both policymakers and businesses.
Though India’s overall job market has shown resilience, with advances in sectors like services, technology and retail, unemployment — particularly among youth and rural workers — remains a socio-economic challenge. The automation revolution and shifts in global supply chains have further raised the bar for what constitutes meaningful and sustainable employment.
Industry leaders want the government to use Budget 2026 as a platform to boost employment prospects through:
- Targeted incentives for labor-intensive sectors such as textiles, construction, MSMEs and tourism.
- Upskilling and reskilling initiatives to better align the workforce with technology-enabled roles.
- Tie-ups between industry and academia for vocational training programs.
- Continued support for PLI (Production Linked Incentive) schemes to spur industrial activity — programmes which have historically led to significant job creation in manufacturing sectors.
By signalling budgetary support for employment, industry hopes that the government will create conditions for sustained income growth and social stability — especially crucial in rural and semi-urban regions where alternative employment opportunities can be limited.
Capital Expenditure (Capex): Building for the Long Term
A second key demand emerging from the pre-budget survey is a continued focus on capital expenditure — public investment in infrastructure, strategic sectors and manufacturing ecosystems. Industry respondents argue that capex acts as a cornerstone for long-term economic productivity and competitiveness.
The argument is simple yet powerful: when the government invests in infrastructure such as roads, ports, logistics corridors, energy networks and digital backbone facilities, businesses follow suit with private investments, creating a virtuous cycle of growth.
Some of the specific capex-related expectations include:
- Sustained or increased allocations for infrastructure corridors that link manufacturing hubs to export gateways.
- Investment in specialized clusters, for example in electronics manufacturing or defence engineering, that can anchor private industrial activity.
- Expansion of research and innovation hubs — such as R&D funds for emerging technologies like drones and artificial intelligence.
By prioritizing capex, the government not only directly stimulates economic activity but also sets the stage for the private sector to invest confidently — helping close India’s infrastructure deficit and enhance productivity in the medium to long run.
Boosting Exports: Integrating India with Global Markets
As the global economic landscape evolves, manufacturers and service providers alike are keen on securing a stronger foothold in international markets. However, rising trade tensions, tariff barriers, and competitive pressures have made the task more complex.
Recognizing this, India Inc has urged the Finance Ministry to consider export-enhancing measures in Budget 2026 that go beyond traditional incentives. These include:
- Enhancing allocations under RoDTEP (Remission of Duties and Taxes on Exported Products) to ensure Indian exporters are better positioned price-wise in global markets.
- Streamlining customs and trade facilitation processes to reduce logistical bottlenecks.
- Customs duty rationalization to simplify trade rules and align them more closely with global best practices.
- Policy support for MSMEs to access global value chains with stronger credit flows and export financing.
Exports matter not just for corporate profits, but also for employment, foreign exchange earnings and technological upgrading. A robust export sector can help countries weather external shocks better and diversify economic risk.
Balancing Fiscal Discipline with Growth Needs
While industry ambitions are high, there is also a clear understanding that fiscal discipline must be maintained. Around 42% of surveyed respondents expressed confidence that India will meet its fiscal deficit target, underscoring trust in government’s fiscal roadmap.
Fiscal consolidation — balancing between stimulating growth and maintaining macroeconomic stability — will be a key challenge for Budget 2026. Economists and industry alike expect the government to navigate this careful middle path by:
- Prioritizing high-impact capex projects that enhance long-term growth potential.
- Avoiding excessive tax breaks that could compromise revenue integrity.
- Leveraging digital technologies in tax administration to improve compliance and broaden the tax base.
Such a balanced approach would allow India to harness growth without jeopardizing its credit ratings, inflation control, or long-term fiscal sustainability.
What This Means for People and Businesses
The expectations set out by India Inc reflect not just corporate aspirations but also broader socio-economic realities. If the government addresses these demands effectively in Budget 2026, the likely impact could be:
- Enhanced employment opportunities — particularly in manufacturing and trade-linked sectors.
- More competitive infrastructure and business ecosystems, driving investment and productivity.
- Greater integration with global markets, translating into higher exports and foreign exchange earnings.
- Improved ease of doing business, attracting both domestic and foreign investment.
For ordinary citizens, such measures could mean more job prospects, rising incomes, and potential improvements in public infrastructure — from roads and transport to digital access and energy supply. For startups and MSMEs, greater access to credit and smoother regulatory pathways could ease operational challenges and fuel innovation.
Looking Ahead: Budget 2026 and Beyond
As Budget day approaches, expectations remain high but tempered by realism. Industry leaders acknowledge that not all demands can be met at once, and that fiscal constraints will shape policy choices. Yet there is an overarching sense of optimism that the budget will reinforce India’s growth trajectory, even as it steers through external uncertainties and internal structural reforms.
What remains clear is that the focus on jobs, capex and export competitiveness reflects a broader consensus about where India’s economic priorities lie in the medium term. Whether the government will respond with bold measures in these areas is a question that will be answered on February 1, 2026, when Finance Minister presents the Union Budget 2026–27 in Parliament.