With the Union Budget 2026–27 just days away, corporate India has set out its expectations, urging the government to focus on employment generation, export competitiveness, and sustained economic momentum. A new survey by the Federation of Indian Chambers of Commerce and Industry (FICCI) suggests that while businesses remain optimistic about India’s economic future, they see the upcoming budget as a critical opportunity to reinforce growth drivers amid global uncertainty.
The survey was conducted between late December 2025 and January 2026 and gathered responses from nearly 100 companies across sectors. Finance Minister Nirmala Sitharaman is scheduled to present the Union Budget on February 1.
Industry Confidence in Growth Outlook
The findings indicate strong confidence in India’s economic trajectory. Nearly half of the respondents expect GDP growth in FY 2026–27 to remain between 7 and 8 per cent, while close to 80 per cent expressed optimism about long-term growth prospects.
Respondents attributed this confidence to ongoing infrastructure investment, steady domestic demand, and policy continuity. However, they also stressed that sustained growth will depend on how effectively the budget addresses jobs, exports, and investment challenges.
Job Creation Emerges as a Top Priority
A key message from the survey is the urgent need for job creation, particularly through infrastructure, manufacturing, MSMEs, and construction. Industry participants said that higher capital expenditure and faster project execution can generate large-scale employment, both skilled and semi-skilled.
FICCI noted that employment-focused policies will be crucial to support consumption and ensure inclusive growth. Respondents called for targeted incentives for labour-intensive sectors and MSMEs, which are seen as major job generators across urban and rural areas.
Export Support Crucial Amid Global Trade Challenges
The survey highlighted growing concerns around global trade uncertainty. Industry leaders pointed to tariff and non-tariff barriers, including the European Union’s Carbon Border Adjustment Mechanism (CBAM) and forest-related compliance norms.
CBAM aims to impose a carbon price on emission-intensive products such as steel, aluminium, and cement. While the mechanism promotes cleaner production, exporters fear higher costs and reduced competitiveness.
To address these challenges, industry called for smoother customs procedures, reduced logistics and port bottlenecks, improved trade facilitation, and a stronger refund and incentive framework.
Demand to Increase RoDTEP Allocation
Participants strongly recommended increasing allocations under the RoDTEP scheme, which provides remission of duties and taxes on exported products. They also sought reforms in the Special Economic Zone (SEZ) policy and rationalisation of customs tariffs to improve efficiency and global competitiveness.
Focus Areas: Infrastructure, Defence and MSMEs
The survey identified three main macroeconomic priorities for Budget 2026–27:
- Job creation
- Continued infrastructure push
- Strong support for exports
On fiscal management, about 42 per cent of respondents expect the fiscal deficit to settle around 4.4 per cent of GDP in FY 2025–26, reflecting support for financial discipline.
To boost defence manufacturing, industry suggested raising the capital component of defence spending to 30 per cent, along with Rs 1,000 crore each for the drone PLI scheme and a dedicated drone R&D fund.
As Budget Day approaches, industry hopes these recommendations will translate into concrete measures that support growth, jobs, and global competitiveness.
