Budget 2026-27 provides policy, reform continuity & macroeconomic stability despite economic challenges: FICCI President

FICCI, the Federation of Indian Chambers of Commerce and Industry, has reviewed the Union Budget for the year 2026-27. The organization expressed positive views on the budget's priorities and policies. One of the main praises from FICCI was for the focus on growth and inclusivity. The budget aims to support India’s economic progress while also helping different sectors of society. FICCI highlighted the government's focus on empowering young people and encouraging rural development. The organization noted that India is now seen as a stable economic force in a challenging global environment. According to FICCI, the budget reinforces this image by emphasizing stability and consistent policy. The government has maintained its focus on continuity in policies, which FICCI sees as positive for businesses and economic health. FICCI also welcomed the increased public capital expenditure. The government plans to spend more on infrastructure and logistics, with an allocation of 12.2 lakh crore rupees. This increase is meant to boost building projects and improve transportation networks, which are important for economic growth. The organization pointed out that the government is balancing its spending with efforts to manage its finances well. The budget shows a commitment to fiscal consolidation, meaning it aims to control overall government debt and maintain economic stability. In addition, FICCI appreciated the budget's support for manufacturing, small businesses, infrastructure, and sectors that use advanced technology. These areas are key to creating jobs and making India more competitive globally. The focus on these sectors aligns with the goal to make the economy more diverse and resilient. Another important aspect recognized by FICCI is the emphasis on rural development. The budget highlights high-value crops, promoting allied sectors, and investing in rural infrastructure and technology. These steps are seen as ways to support inclusive growth that benefits both farmers and rural communities. FICCI also stressed the importance of good cooperation between the central government and states. Effective coordination is necessary to ensure that various schemes and programs are smoothly implemented and produce lasting results. Tax policies were another focus of the review. FICCI emphasized the need for a clear and predictable tax environment that encourages compliance and investment. The organization supports a simplified Goods and Services Tax (GST), with a single rate and a system of input credits to make taxation fairer and easier for businesses. The government’s move to digitize tax administration and introduce the National Single Window was welcomed. These steps are intended to modernize how taxes are collected and managed, making the process more efficient. FICCI also noted the government's plan to raise 4.99 lakh crore rupees through non-tax revenues, which account for about 88 percent of total revenue. Initiatives to modernize tax administration and separate tax policy from collection functions are part of this effort. However, FICCI pointed out that revenue targets need to be realistic. Proper planning and execution are crucial to avoid putting undue burdens on taxpayers who follow the rules. There is concern that higher minimum tax rates and increased taxes on companies and individuals could hamper economic recovery. In conclusion, FICCI considers the Union Budget 2026-27 to be balanced. It recognizes the efforts to promote growth, stability, and inclusiveness, while also highlighting areas that require careful management to sustain momentum and support India’s broader economic goals.