Budget 2026-27: Prioritizing Employment Generation and Export Promotion
According to a survey released by the industry body FICCI, considering rising global tensions, the government should focus on promoting employment and providing stronger support for exports in the upcoming budget. Half of the industrial participants expect India’s economic growth in 2026-27 to remain in the range of 7 to 8 percent.
About 80% of the participants are optimistic about growth prospects, reflecting strong confidence in India’s medium-term economic fundamentals. The survey was conducted between late December 2025 and January 2026, based on responses from approximately 100 companies across various sectors.
Export and Policy Recommendations
Participants have demanded increased allocation under RODTEP (Remission of Duties and Taxes on Exported Products) to improve export competitiveness. Additionally, reforms in SEZ policies and rationalization of customs duties were suggested. Companies also recommended simplifying direct tax compliance, promoting digitization, and faster dispute resolution mechanisms.
Three Key Priorities
- Employment generation
- Continuous focus on infrastructure
- Enhanced support for exports
FICCI noted that key sectors for focus include infrastructure, manufacturing, defense, and MSMEs.
Focus on Manufacturing and Capital Expenditure
Survey participants emphasized fiscal prudence. About 42% of them expect the fiscal deficit in the current financial year to remain around 4.4% of GDP. The government should continue prioritizing manufacturing and capital expenditure.
Specifically, measures to promote defense manufacturing include increasing capital expenditure by 30% to modernize frontline weaponry. Additionally, increasing drone PLI investment was also suggested.