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Key Points

The Confederation of Indian Industry (CII) has projected India's economic growth between 6.4-6.7% for the fiscal year 2026-27, highlighting the country's resilience amid global uncertainties. The industry body has proposed a comprehensive set of reforms spanning taxation, manufacturing, and business regulations to enhance economic competitiveness. Key recommendations include GST rate rationalization, simplifying income tax processes, and restructuring customs duties to support domestic industries. These strategic reforms aim to create a more business-friendly environment and sustain India's robust economic trajectory.

Key Points: CII Forecasts 6.4-6.7% India Growth Amid Economic Reforms

  • CII recommends GST rate reduction from 5 to 3 slabs
  • Proposes direct tax reforms to simplify income tax processes
  • Suggests customs duty restructuring for enhanced competitiveness
  • Advocates land and logistics reforms to boost economic efficiency
2 min read

CII expects Indian Economy to grow in the range of 6.4-6.7 per cent in FY26

CII projects robust economic growth for India in FY26, proposing comprehensive reforms across taxation, manufacturing, and business ecosystems.

"India has shown resistance and better growth trajectory compared to major global economies - CII President"

New Delhi, July 3

The Confederation of Indian Industry (CII) on Thursday said that it sees India's economy growing at a pace of 6.4-6.7 per cent in 2026-27, boosted by strong domestic demand.

At a press conference in New Delhi CII President however believes that geopolitical uncertainty could pose downside risk to Indian economic growth.

Amidst this global flux, India has shown resistance and has shown better growth trajectory as compared to other major economies such as China, United Kingdom (UK), US and Euro area.

Industry body CII also proposed a series of next-generation reforms needed to enhance ease of doing business in India.

These reforms span across multiple domains, including taxation, manufacturing costs, fiscal policy, environmental compliance, and logistics.

On GST reforms, CII recommends rate rationalisation from 5 slabs of current rates to three slabs. Essential items at 5 per cent, luxury and sin goods at 28 per cent, and a unified rate of 12-18 per cent for other items.

CIIs other recommendations include streamlining of Input Tax Credit (ITC) to eliminate credit blockages, coordinating audits across states, and reducing litigation through a National Appellate Authority. The Industry body also proposes bringing petroleum, electricity, and real estate under the GST ambit.

CII also asked for direct tax reforms, it recommends implementing the Income Tax Bill to simplify processes and reduce litigation. Measures such as Advance Pricing Agreements and Dispute Resolution Schemes should be encourage to avoid legal delays.

For Customs Duty reforms, CII proposed a 3-tier structure, 0-2.5 per cent for raw materials, 2.5-5 per cent for intermediates, and 5-7 per cent for final goods to streamline imports and enhance competitiveness.

Under Rationalising Cost of Manufacturing, land reforms suggest reducing over 50 zoning categories to 5-7 for more flexible land use, easing urban restrictions, and unlocking land held by PSUs.

In power sector, CII advocates tariff rationalisation, digitisation of distribution, and improved grid transmission.

To reduce logistics costs, CII recommends rationalising tariffs and developing railway freight corridors with port connectivity.

These reforms collectively aim to improve regulatory efficiency, reduce costs, and foster a more business-friendly environment across India.

- ANI

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Reader Comments

P
Priya S
While the growth numbers look promising, I'm concerned about how this growth will translate to job creation. We need more focus on manufacturing and skill development to ensure the youth actually benefit from this economic expansion.
A
Aditya G
The customs duty reforms are much needed! Our import duties have been too complex for too long. A simplified 3-tier structure will make Indian products more competitive globally. Kudos to CII for these practical suggestions.
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Sarah B
As someone working in logistics, I can confirm that our sector desperately needs these reforms. The port connectivity and railway freight corridors could reduce our costs by 20-30%. Hope the government acts on these recommendations soon!
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Nikhil C
The power sector reforms are crucial - we lose so much productivity due to unreliable electricity in smaller towns. Digitization of distribution is the need of the hour. But will state governments cooperate with these changes?
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Kavya N
While I appreciate CII's efforts, I wish they had given more attention to MSMEs in their recommendations. These small businesses form the backbone of our economy but often get overlooked in such policy discussions.
D
David E
Interesting to see India maintaining strong growth projections while other major economies struggle. The land reforms proposal is particularly bold - reducing 50+ zoning

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