With less than ten days to go for the Union Budget, corporate India remains cautiously optimistic about the country’s growth prospects despite a fragile global economic backdrop.
A pre-Budget survey by the Federation of Indian Chambers of Commerce & Industry (FICCI) indicates that industry is counting on a combination of job creation, export support and sustained capital expenditure to keep India’s growth in the 7–8% range over the coming years. The survey, conducted among nearly 100 companies across sectors, found that around half of the respondents expect India’s GDP growth to fall between 7% and 8% in FY26.
Encouragingly, this optimism is accompanied by confidence in fiscal discipline. About 42% of participants believe the government will meet its fiscal deficit target of 4.4% in FY26.
Speaking to CNBC-TV18, FICCI Past President Naina Lal Kidwai said the findings reflect industry’s strong belief that India can maintain high growth while keeping public finances under control.
Jobs Take Centre Stage
Employment generation has emerged as the single biggest priority for industry ahead of the Budget. Over 70% of respondents identified job creation as the most critical macroeconomic theme, particularly as several labour-intensive sectors face mounting pressures.
Kidwai noted that industries such as diamonds, apparel and leather have been significantly impacted by higher US tariffs, heightening the urgency for targeted policy support.
Exports Seen as Key Growth and Employment Driver
Exports are viewed as a crucial lever not only for growth but also for job creation. Apart from tariff challenges, Indian exporters are grappling with rising non-tariff barriers, including the European Union’s Carbon Border Adjustment Mechanism (CBAM) and deforestation-related regulations.
Industry is therefore urging the government to focus on easing trade facilitation, rationalising customs procedures and strengthening export incentive and refund mechanisms in the upcoming Budget.
“There is a strong expectation that the government does more in terms of aiding and supporting exports, both for job creation and for manufacturing,” Kidwai said. She added that fixing SEZ policies, simplifying customs processes and developing sector-specific clusters—such as electronics clusters—could help India integrate more deeply into global value chains.
The survey also suggests that export-led growth could crowd in private capital expenditure over time. Improvements in logistics, reduction of port bottlenecks and smoother supply chains are seen as essential to boosting private investment, particularly in manufacturing and MSMEs, which are more job-intensive.
Services, Tourism and Reforms in Focus
Beyond exports, industry expects job creation to gain momentum from the services and tourism sectors. Kidwai pointed out that services continue to attract offshore investment, with new centres of excellence being established across the country, while tourism remains a largely untapped employment generator.
On the reform front, FICCI Director General Jyoti Vij said factors of production remain a major concern for industry. Lowering the cost of doing business—across land, power and finance—continues to top the reform agenda. She highlighted the need for deeper bond markets, rationalisation of power cross-subsidies and faster implementation of reforms at the state level.
Tax Certainty and Dispute Resolution
Tax simplification and predictability also feature high on India Inc’s Budget wishlist. Vij said industry is seeking simpler compliance, greater digitisation and improved coordination across tax departments. While digitisation has advanced across direct taxes, GST and customs, businesses want better system integration and a common interface to reduce compliance friction.
Dispute resolution remains a key pain point, with a large backlog of cases at the Commissioner of Income Tax (Appeals). FICCI has proposed a dual-track mechanism to fast-track low-impact cases and reduce pendency, alongside steps to enhance tax certainty and investor confidence.
As Budget day approaches, the message from corporate India is clear: sustaining high growth in a challenging global environment will require a sharp focus on job creation, export competitiveness and policy predictability, backed by continued fiscal prudence.
