Indian Corporate Sector Maintains Strong Confidence in Economy Despite Global Headwinds
The Federation of Indian Chambers of Commerce and Industry (FICCI) has released its highly anticipated Pre-Budget Survey for the fiscal year 2026-27, revealing that India's corporate sector continues to demonstrate robust confidence in the domestic economy even amidst persistent global challenges. The comprehensive survey provides crucial insights into industry sentiment and expectations as the nation approaches the presentation of the Union Budget.
Overwhelming Optimism on Growth Trajectory
The survey findings indicate that approximately 80 percent of participating businesses maintain a positive outlook on India's economic growth prospects. Nearly half of these respondents project that the economy will expand within the 7 to 8 percent range during the upcoming fiscal year. This sustained optimism reflects the corporate sector's firm belief in India's medium-term economic fundamentals, which appear resilient despite ongoing global uncertainties.
Industry representatives have expressed alignment with the government's fiscal consolidation roadmap while simultaneously outlining their key macroeconomic expectations. The survey highlights three priority areas that businesses hope will receive focused attention in the forthcoming budget:
- Employment generation initiatives
- Infrastructure expansion projects
- Export promotion measures
Strategic Recommendations for Manufacturing and Defence
To strengthen domestic manufacturing capabilities, FICCI has proposed an innovative solution: establishing a mega electronics industrial cluster that would co-locate original equipment manufacturers (OEMs), electronics manufacturing services (EMS) firms, and component suppliers. This integrated approach aims to enhance efficiency and competitiveness within the electronics sector.
In the realm of national security, the survey draws attention to defence modernisation requirements. FICCI has urged the government to increase the capital outlay share in defence allocations to 30 percent, specifically to support advancements in unmanned aerial vehicles (UAVs), artificial intelligence-enabled capabilities, and sophisticated electronic warfare systems.
Addressing Global Trade Challenges
With rising global trade tensions and evolving international regulatory norms, the survey emphasizes the critical need for stronger export support mechanisms. Industry respondents have identified several areas requiring immediate attention to maintain India's export competitiveness:
- Streamlining customs clearance procedures
- Enhancing logistics efficiency across supply chains
- Increasing allocations under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme
Among specific policy recommendations, the survey suggests rationalizing customs duties by converging rate slabs to three distinct levels. This simplification of the tariff framework aims to reduce compliance burdens while making India's trade policies more transparent and predictable for businesses.
Regulatory Reforms for Enhanced Investor Confidence
From a regulatory perspective, businesses have emphasized several critical areas for improvement. The survey identifies three key regulatory priorities that could significantly enhance India's investment climate:
- Compliance simplification through digitization initiatives
- Providing greater tax certainty to businesses
- Strengthening dispute resolution mechanisms
More effective litigation management has been highlighted as a crucial step toward boosting investor confidence and creating a more business-friendly regulatory environment.
Balancing Growth with Fiscal Responsibility
Collectively, the FICCI survey reflects industry expectations that the upcoming Union Budget will skillfully balance growth imperatives with fiscal prudence. Businesses anticipate that the budget will advance structural reforms designed to integrate India more firmly into global value chains while maintaining macroeconomic stability.
The survey results underscore the corporate sector's continued faith in India's economic resilience and its expectations for policy measures that will sustain growth momentum, create employment opportunities, and enhance global competitiveness in an increasingly complex international landscape.
