Statement of Mr Rajiv Memani, President, CII on Union Budget 2026–27
The Union Budget 2026–27 presents a strong and credible roadmap for strengthening India’s competitiveness through a balanced mix of fiscal discipline, structural reforms and targeted interventions to stimulate private investment. The Budget reinforces confidence in India’s growth story at a time when global economic conditions remain uncertain and investment decisions are increasingly driven by policy clarity and long-term predictability.
CII welcomes the clear focus on enhancing India’s manufacturing depth and technological capabilities. The emphasis on sectors such as biopharma, semiconductors, electronics, critical minerals and advanced manufacturing reflects a strategic approach to building domestic capabilities in areas that will define global competitiveness over the next decade. Initiatives such as Biopharma SHAKTI, the next phase of the India Semiconductor Mission and the rejuvenation of industrial clusters will help strengthen value chains, improve productivity and support export-led growth.
Equally important is the strong thrust on MSMEs as engines of employment and innovation. The creation of the SME Growth Fund, expansion of TReDS-based financing, and improved integration of MSMEs with government procurement platforms will significantly enhance access to credit and market opportunities. These measures will also support formalisation and enable small enterprises to scale sustainably.
From the perspective of the services sector, the Budget introduces several forward-looking initiatives. The proposal to establish University Townships near major industrial and logistics hubs will help bridge skill gaps and strengthen the talent pipeline for industry. The focused push on tourism, including skill development for tourism professionals, destination development and promotion of eco-tourism, will generate employment while strengthening local economies.
CII particularly welcomes the measures aimed at reinforcing India’s position as a global hub for technology and digital services. The steps to provide greater tax certainty, faster dispute resolution and an enabling regulatory framework for the IT and services sector will support continued growth of Global Capability Centres and high-value service exports. The tax holiday for foreign companies providing cloud services using data centres located in India is a significant step that will catalyse investments in data centres, digital infrastructure and cloud ecosystems, further strengthening India’s digital economy.
We also welcome the boost provided to forward looking sectors like critical minerals, nuclear power and semiconductors. Also BCD exemption for import of capital goos required for processing of critical minerals will help in this endeavour. The Semiconductor Mission 2.0 is also expected to provide a boost to the aim of manufacturing chips in India. Similar thrust on nuclear power is equally encouraging.
The Budget also sends positive signals to investors through its continued focus on regulatory simplification and ease of doing business. The review of FEMA (Non-Debt Instruments) Rules, extension of customs advance rulings, and rationalisation of compliance frameworks will enhance predictability and reduce transaction costs for businesses.
In addition, the focus on financial sector reforms, development of corporate and municipal bond markets, and strengthening of long-term financing mechanisms will support capital formation and urban infrastructure development.
1 February 2026
New Delhi