Industry bodies have expressed expectations from the Union Budget 2026–27, highlighting priorities including employment generation, manufacturing, defence, MSMEs and exports, according to a recent pre-Budget survey conducted by the Federation of Indian Chambers of Commerce and Industry.
The survey indicates that around 80 per cent of respondents are confident about India’s economic growth outlook. About 50 per cent of industry participants expect India’s gross domestic product growth to remain in the range of 7 to 8 per cent in the next financial year. Respondents stated that despite volatility in global economic conditions, India’s underlying economic fundamentals remain resilient.
On fiscal consolidation, nearly 42 per cent of respondents said they expect the government to meet the fiscal deficit target of 4.4 per cent of GDP in FY26, reflecting industry confidence in the government’s fiscal management and economic policies.
Industry expectations from the Budget are focused on three key areas: measures to promote employment generation, continued emphasis on infrastructure development, and enhanced support to strengthen exports.
To boost manufacturing, industry representatives have called for an increase in capital expenditure. The survey suggests the creation of a large electronics industrial cluster bringing together original equipment manufacturers, electronics manufacturing services firms and component suppliers at a single location to strengthen the domestic electronics ecosystem and accelerate industrial growth.
In the defence sector, the industry has sought an increase of up to 30 per cent in the capital budget to support technological advancement and self-reliance. Specific budgetary allocations have been recommended for emerging technologies such as unmanned aerial vehicles, counter-UAV systems, electronic warfare and artificial intelligence-based solutions. The survey also proposes an allocation of Rs 1,000 crore for the drone production-linked incentive scheme and a separate Rs 1,000 crore for a drone research and development fund.
On exports, respondents highlighted challenges arising from global tariff uncertainty and regulations such as carbon border adjustment mechanisms and deforestation-related rules. To address these issues, the industry has called for a simplified and predictable export policy, streamlined customs and trade processes, and reduced delays in logistics and ports. Suggestions include increased funding for the RoDTEP scheme, reforms in the special economic zones policy, and rationalisation of customs tariffs into three standard rates.
The survey also outlines expectations for reforms in direct taxation, including further simplification of online tax reporting, mechanisms to provide tax certainty, and faster resolution of disputes and litigation. Additional emphasis has been placed on easing processes related to corporate restructuring and investor services.
For micro, small and medium enterprises, industry respondents have sought ber budgetary support, noting the sector’s role in employment generation, exports and overall economic growth.
The industry has reiterated the need for sustained focus on infrastructure, including higher investment in roads, railways, ports and air connectivity, stating that such spending would support job creation and enhance production and export capacity.
Overall, the survey reflects industry expectations that the Union Budget 2026–27 will prioritise economic growth, employment, manufacturing, defence, MSMEs and exports through targeted investment and policy support.
