Parul
The Federation of Indian Chambers of Commerce and Industry (FICCI) conducted a quick survey to gauge the sentiment of industry members before the Union Budget 2025-26. According to the survey results, about 64 per cent participants expressed optimism regarding India’s growth prospects ahead of the Union Budget. Nearly 60 per cent of participants projected a GDP growth rate between 6.5 and 6.9 per cent for 2025-26. Though the numbers mark a moderation from the high growth of over 8.0 per cent witnessed in 2023-24 – it is sync with persistent headwinds on account of external factors.
The Government’s commitment to fiscal consolidation has put us in good stead and the survey participants expected the government to remain on that course. About 47 per cent of participants expected the government to meet the fiscal deficit target of 4.9 per cent for FY 2024-25 and another 24 per cent reporting that the government could improve and report a lower fiscal deficit number for the current year.
A significant focus of the survey was on macroeconomic policy interventions. Majority of respondents highlighted the need for sustaining public capital expenditure, with 68 per cent calling for a thrust on capex to sustain the growth momentum. At least a 15 per cent increase in capex allocation for FY 2025-26 is being looked forward to by members of Indian industry.
Additionally, over half of the respondents emphasised the importance of reforms to further enhance the ease of doing business. Reforms pertaining to factors of production – particularly with respect areas like land acquisition, labor regulations, and power supply – remain important. The last year’s Union Budget had indicated a roadmap on the next generation reforms – the industry members look forward to further guidance on the same.
Further, concern was expressed regarding the muted demand situation. A significant number of industry members have called for a review of the direct tax structure. A relook at the slabs and the tax rates is warranted as this could leave more money in the hands of people and spur consumption demand in the economy.
Respondents also called for a strong policy push on simplifying the tax regime, incentivising the development of green technologies/renewables and EVs, and easing compliances through digitisation.
On the taxation front, providing tax certainty, addressing custom duty inversion, and rationalisation of TDS provisions were highlighted as important themes by the participants.
The participants also showed support for an amnesty scheme under customs, with 54 per cent favoring its introduction to enable swift resolution of disputes.
The sectoral focus for the upcoming budget was clear, with participants identifying infrastructure, manufacturing (particularly Industry 4.0), and agriculture/rural development as critical areas for policy attention. Nearly 40 per cent of the respondents stressed the continued need to support the MSMEs, given the pivotal role of the sector in driving employment creations. Targeted measures for MSMEs ensuring streamlined credit access, and support for adoption of new technology and sustainability measures were called for.
Export competitiveness also emerged as a priority, with respondents emphasising further improvement in the efficiency of logistics and continuation of interest equalisation schemes to enhance India’s global trade position.
The findings reflected continuation of a balanced approach to growth, with reforms aimed at enhancing productivity across key sectors. Additionally, participants stressed the importance of aligning macroeconomic policies to strengthen India’s resilience against global headwinds, including geopolitical uncertainties, inflationary pressures, and supply chain disruptions. The Budget must continue strengthening the foundation for long-term economic expansion while addressing pressing macroeconomic issues.
Union Budget 2025-26 will be the first full budget of the new government and presents an opportunity to further strengthen India’s position in the global economy and highlight its credentials as a leading investment destination.
