Industry Expects Strong Focus on Jobs and Exports in Budget 2026

Ahead of the Union Budget 2026-27, industry sentiment remains robust despite global economic uncertainties, according to the Federation of Indian Chambers of Commerce and Industry (FICCI) Pre-Budget Survey. Corporate leaders expressed confidence in India’s growth trajectory, fiscal consolidation, and policy continuity, indicating a positive outlook for the upcoming fiscal year.

The survey found that nearly 80% of respondents are optimistic about India’s economic prospects, with close to half expecting GDP growth of 7-8% in FY 2026-27. Fiscal prudence remains a key priority, as 42% of participants believe the government will achieve its fiscal deficit target of 4.4%, reflecting trust in macroeconomic management. Job creation emerged as the top expectation, cited by 71% of industry representatives, followed by capital expenditure (61%) and export promotion (54%).

Sectoral priorities highlighted by respondents include infrastructure (59%), manufacturing (51%), and defence (37%). On policy measures, easing compliance requirements (57%) and boosting research and development (56%) were emphasized as critical areas for fostering investment-led growth and global competitiveness.

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The survey also underscored the need to simplify customs regulations, with 90% of participants flagging trade facilitation as a top concern. Streamlining customs processes, reducing port bottlenecks, and strengthening export incentives under schemes like RoDTEP were seen as essential to enhance India’s integration into global value chains and improve export competitiveness.

In the defence sector, industry expectations include increasing capital outlay to 30% for modernising frontline assets, investing in drones, electronic warfare systems, and AI-enabled capabilities, and enhancing production-linked incentives (PLI) for drone manufacturing. FICCI suggested setting up a Rs 1,000 crore drone R&D fund to support innovation in emerging technologies.

Finally, respondents highlighted the need for rationalisation of customs tariffs and reforms in the Special Economic Zone (SEZ) policy to simplify regulatory frameworks, reduce compliance costs, and attract greater foreign and domestic investment. Industry leaders hope Budget 2026 balances growth, employment, and global trade competitiveness while sustaining fiscal discipline.

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