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CII Praises Budget 2026-27 for Fiscal Discipline and Major Capex Boost

The Confederation of Indian Industry has praised the Union Budget 2026-27 for its commitment to fiscal prudence and a significant boost to public capital expenditure. The industry body stated that the increased capex of Rs 12.2 lakh crore will crowd in private investment and strengthen infrastructure. Key sectoral focuses like semiconductors, critical minerals, and biopharma are seen as aligned with India's manufacturing ambitions. The budget's support for MSMEs and measures to improve ease of doing business were also highlighted as positive steps.

Key Points: CII Lauds Budget 2026-27 for Fiscal Prudence, Capex Push

  • Fiscal deficit target of 4.3% for FY27
  • Capex increased to Rs 12.2 lakh crore
  • Push for semiconductors & critical minerals
  • Rs 10,000 crore SME Growth Fund
  • Focus on logistics & ease of doing business
2 min read

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

CII welcomes Union Budget 2026-27's focus on fiscal discipline, Rs 12.2 lakh crore capex, and reforms to boost manufacturing and investment.

"At a time of heightened global uncertainty, the Budget sends a reassuring signal of continuity, credibility, confidence, and long-term vision - Chandrajit Banerjee, CII"

New Delhi, Feb 1

The Confederation of Indian Industry 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.

- IANS

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Reader Comments

P
Priya S
Good to see continued support for MSMEs with the Rs 10,000 crore fund. My small business in Surat really needs easier access to credit. The simplified compliance will save us so much time and headache. Hope the benefits reach the ground level quickly.
R
Rohit P
While the capex push is impressive, I hope this translates into more jobs for our youth. The focus on semiconductors and electronics is great, but we need parallel skill development programs. The budget looks good on paper, but implementation is key.
S
Sarah B
As someone working in the biopharma sector, the emphasis on our industry is very encouraging. Strengthening domestic value chains is crucial. The infrastructure risk guarantee framework is a smart move to attract more private investment.
V
Vikram M
Fiscal deficit at 4.3% is a responsible target. In these uncertain global times, this budget sends a message of stability. The expansion of inland waterways is an underrated move - will boost connectivity and reduce transport costs significantly.
K
Kavya N
Respectfully, I feel the budget could have done more for the agriculture sector and rural employment. While industry gets a boost, we must not forget the backbone of our economy - the farmers. Hope the next budget addresses this balance.
M
Michael C

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