USIBC, USISPF Praise Budget's Tech, Customs & Tax Reforms; Stress Execution Clarity

Two leading US-India industry bodies – the US-India Business Council (USIBC) and the US-India Strategic Partnership Forum (USISPF) – have welcomed the Union Budget 2026-27, calling it a forward-looking fiscal blueprint that strengthens India’s position as a global investment hub and deepens economic ties with the United States.

Reacting to the budget presented by Finance Minister Nirmala Sitharaman, both bodies highlighted the government’s focus on technology-led growth, customs and tax reforms, strategic manufacturing, and regulatory modernisation. They said these measures send a strong signal to global investors amid ongoing geopolitical and economic uncertainties.

Frontier Technologies and Cloud Incentives

USIBC President Ambassador (ret.) Atul Keshap praised initiatives including India Semiconductor Mission 2.0, AI Mission, National Research Mission, Innovation Fund, and National Quantum Mission, calling them pivotal for positioning India as a hub for next-generation technologies, resilient supply chains, and indigenous intellectual property. A standout announcement – the long-term tax holiday until 2047 for foreign cloud service providers operating local data centres – received particular acclaim. USISPF President and CEO Mukesh Aghi compared it to the IT incentives of the early 2000s, predicting it could catalyse investment, exports, job creation, and capability building in India’s cloud ecosystem.

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Customs, Tariffs, and Tax Reforms

The forum highlighted customs modernisation measures, such as AI-powered non-intrusive inspections, phased container scanning at major ports, and expansion of the Single Window mechanism for express cargo. These steps are expected to reduce dwell times, improve transparency, and streamline logistics for global manufacturers and exporters. Tariff rationalisation, including nil Basic Customs Duty on critical minerals, solar manufacturing inputs, battery storage equipment, select electronics, aircraft components, and certain medicines, was praised for lowering input costs while boosting export competitiveness. Major direct tax and transfer pricing reforms aimed at improving predictability for IT services and Global Capability Centres (GCCs) were also welcomed.

Sectoral Focus and Healthcare Initiatives

USIBC drew attention to initiatives in electronics components, container manufacturing, chemical parks, Biopharma SHAKTI, and revival of legacy industrial clusters. Energy and climate measures, including the ₹20,000 crore Carbon Capture Utilisation and Storage scheme and customs exemptions for lithium-ion cell manufacturing, critical minerals processing, and nuclear power projects, were cited as critical for energy transition and supply chain resilience. The bodies also appreciated measures to establish medical value tourism hubs, enhance mental healthcare, care for Divyangjans, and expand cancer care services, reinforcing India’s services economy.

Execution Remains Key

While praising the budget’s vision, USIBC and USISPF stressed the importance of clarity in implementation, private sector participation, and timely execution to realise the reforms’ full potential. Both organisations reaffirmed their commitment to collaborating with the Government of India to strengthen the investment climate and deepen US-India commercial ties.

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