CII Suggests Investment-Led Reforms For Union Budget 2026–27

New Delhi, Dec 15 (KNN) Industry body Confederation of Indian Industry (CII) has proposed a wide-ranging set of reforms for the Union Budget 2026–27, aimed at boosting public, private and foreign investments and sustaining India’s position as one of the world’s fastest-growing major economies.

Push for Higher Public Capex and Infrastructure Pipeline

The leading industry body has recommended increasing central capital expenditure by 12 per cent and capex support to states by 10 per cent in FY27.

It has also called for launching a Rs 150 lakh crore National Infrastructure Pipeline (NIP) 2.0 for the 2026-32 period to strengthen infrastructure-led growth.

Incentives to Unlock Private and Foreign Investment

CII suggested offering incremental tax credits or compliance relaxations for firms achieving significant new investment, production or tax contribution milestones.

It also proposed reinstating accelerated depreciation benefits, particularly for MSMEs and manufacturing, provided the structure does not trigger Minimum Alternate Tax (MAT) liabilities.

Strengthening Investment Institutions

The industry chamber has urged strengthening the National Investment and Infrastructure Fund (NIIF) through the creation of a Sovereign Investment Strategy Council to align investments with national priorities.

It also suggested institutionalising a Capital Expenditure Efficiency Framework to prioritise high-impact projects, monitor execution and assess outcomes.

Fiscal Stability and Global Capital Access

CII recommended adopting an economic-cycle-based public debt framework instead of rigid annual deficit targets, to allow counter-cyclical fiscal flexibility during global shocks while maintaining medium-term debt sustainability.

It called for simplifying external commercial borrowing norms, higher borrowing limits and longer tenures for infrastructure and manufacturing projects. It also proposed a single-window clearance mechanism for large FDI proposals with deemed approvals within 60-90 days.

Diaspora and Global Investor Engagement

CII has also suggested creating an NRI Investment Promotion Fund, with up to 49 per cent government stake, to channel NRI, FPI and institutional investments into sectors such as infrastructure and artificial intelligence.

It also recommended establishing an India Global Economic Forum to deepen engagement with multinational companies, sovereign wealth funds and global investors.

(KNN Bureau)