US Trade Bodies Applaud India's Growth-Focused Budget 2026-27

US-India Business Council (USIBC) and the US-India Strategic Partnership Forum (USISPF) said the budget underscored India's commitment to economic growth, resilience, and global competitiveness, while strengthening the foundations for deeper bilateral commercial and strategic ties.

Emphasis on sustained growth, fiscal prudence, public investment, and reform sends a strong signal to global investors at a time of geopolitical and economic uncertainty, the two said in separate statements. This reinforces India's position as one of the world's fastest-growing major economies and a critical partner for the United States, both said.

According to USIBC president Atul Keshap, the budget reflected "India's ambition to sustain momentum as one of the world's fastest-growing major economies and a critical partner for the United States in the Indo-Pacific."

Welcoming the government's focus on sustained growth of around 7 per cent, fiscal discipline, and public investment, USIBC said these priorities were central to strengthening India's long-term growth fundamentals and deepening bilateral commercial ties.

At the same time, the Council encouraged the government to accelerate reforms in taxation, ease of doing business, trade facilitation, and regulatory predictability to boost investor confidence and unlock higher levels of foreign investment.

USIBC also welcomed the focus on frontier technologies through initiatives such as the India Semiconductor Mission 2.0, the AI Mission, the National Research Mission, the Innovation Fund, and the National Quantum Mission, noting that they underscore India's ambition in next-generation technologies.

On energy and climate, USIBC highlighted the Rs 20,000 crore Carbon Capture Utilization and Storage scheme, along with Basic Customs Duty exemptions for lithium-ion cell manufacturing, critical mineral processing, and rare earth permanent magnets.

The Council also welcomed the extension of customs duty exemptions for nuclear power projects until 2035. In healthcare and services, USIBC said it noted efforts to build a stronger care economy, with increased focus on mental healthcare, Divyangjans, and cancer.

Applauding the union budget for supporting sustained growth, job creation, and enhanced ease of doing business, USISPF said it focuses on technology-driven reforms and sectoral competitiveness. The trade facilitation aligns strongly with its priorities and strengthened India's attractiveness as a global investment destination.

The Forum particularly welcomed comprehensive customs reforms aimed at modernising trade processes and improving logistics efficiency.

It said the rollout of end-to-end digital and technology-enabled solutions, including AI-powered non-intrusive inspection, phased scanning of all containers at major ports, and extension of the Single Window mechanism to express cargo, would reduce dwell times and streamline cargo movement.

On tariffs, USISPF said targeted customs duty rationalisation supported India's manufacturing and energy transition goals.

USISPF noted that the basic Customs Duty has been reduced to nil on critical minerals, solar manufacturing inputs, capital goods for lithium-ion Battery Energy Storage Systems, nuclear power equipment, select electronics and aircraft components, MRO raw materials, and certain critical drugs and medicines.

It welcomed reforms in direct taxation and transfer pricing, including the simplification of transfer pricing and safe-harbour rules to reduce litigation for the IT services sector and Global Capability Centres.

"The Budget provides a long-term tax holiday until 2047 for cloud services provided through local data centres," USISPF said, calling it a landmark policy with the potential to catalyse global investment and long-term job creation.

- IANS