CII lauds Budget 2026-27 for fiscal prudence, capex push

New Delhi, Feb 1 (IANS) The Confederation of Indian Industry (CII) on Sunday said the Union Budget 2026-27, with its next?generation reforms, builds confidence, and its thrust on public capital expenditure will enhance private investment.

CII welcomed the continued focus on fiscal prudence, noting that the fiscal deficit target of 4.3 per cent of GDP for FY27 reinforces confidence in India’s macroeconomic management.

"There is broad recognition on fiscal discipline, including adherence to the debt-to-GDP glide path to reach 50 per cent of GDP by FY31 -- balanced with flexible policy calibrated to economic realities," the industry body said.

The increase in public capital expenditure to Rs 12.2 lakh crore, with effective capital expenditure exceeding Rs 17 lakh crore, will crowd in private investment, strengthen infrastructure, and improve productivity across sectors, it added.

"At a time of heightened global uncertainty, the Budget sends a reassuring signal of continuity, credibility, confidence, and long-term vision for India’s development journey," said Chandrajit Banerjee, Director General, CII.

Further, the focus on high-quality infrastructure through new freight corridors, expansion of inland waterways, high-speed rail networks, and the proposed infrastructure risk guarantee framework will significantly enhance logistics efficiency and reduce the cost of doing business.

CII also highlighted that the emphasis on sectors such as semiconductors, biopharma, chemicals, capital goods, textiles, sports goods, critical minerals, and electronics is timely and aligned with India’s ambition to emerge as a global manufacturing hub.

The expansion of the India Semiconductor Mission, support for critical minerals, and rejuvenation of industrial clusters will help deepen domestic value chains, strengthen self-reliance, and enhance export competitiveness.

The industry body also welcomed strong support for MSMEs, including the Rs 10,000 crore SME Growth Fund, enhanced credit support through TReDS, and simplified compliance mechanisms, which will improve access to finance and formalisation.

Further, the CII lauded the emphasis on ease of doing business, commending the risk-based customs clearance, greater digitisation, reduced compliance burden, and enhanced regulatory certainty, which will improve the investment climate and support faster execution of projects.