Budget 2026-27: CII suggests reforms for investment-led growth

Industry lobby CII has proposed a comprehensive set of reforms for the forthcoming Union budget 2026-27 to drive sustained investment growth spanning public, private, and foreign investments, and maintain India’s momentum as one of the world’s fastest-growing major economics.

- PTI

The Confederation of Indian Industry (CII) suggested increasing central capital expenditure by 12% and capex support to states by 10% in fiscal year 2027 (FY27); launching a ₹150 trillion National Infrastructure Pipeline (NIP) 2.0 for 2026-32; offering incremental tax credits or compliance relaxations for firms achieving significant new investment, production, or tax contribution milestones; and establishing an NRI Investment Promotion Fund.

It also called for reinstating accelerated depreciation benefits to further incentivise fresh capital expenditure and technology upgrades, particularly for MSMEs and manufacturing industries, provided the measure is structured to stimulate modernisation without triggering Minimum Alternate Tax (MAT) obligations.

Besides, CII urged for strengthening the National Investment and Infrastructure Fund (NIIF) by forming a Sovereign Investment Strategy Council (SIFC) to align investments with national priorities.

The Union Budget for the 2026-27 fiscal year is expected to be presented on 1 February.