New Delhi, Jan 15 (NationPress) Industry leaders are advocating for a more robust commitment to domestic manufacturing and the ‘Make in India’ initiative as pivotal elements for the Union Budget 2026-27, according to a pre-Budget survey by the Associated Chambers of Commerce and Industry of India (Assocham) released on Thursday.

The survey, which engaged professionals from various sectors including manufacturing, services, infrastructure, IT/ITeS, startups, and related fields, revealed that 55% of respondents maintain an optimistic outlook for business over the next year. Meanwhile, 32% hold a neutral position and only 13% express pessimism.

Enhancing domestic manufacturing was identified as the most critical Budget priority to support the vision of an Aatmanirbhar and Viksit Bharat, followed by initiatives to strengthen MSMEs and simplify tax and compliance systems.

The leading industry chamber pointed out that infrastructure and logistics development, job creation, and accelerated digital and AI-driven growth are also significant expectations from the upcoming Budget.

To promote manufacturing expansion, industry representatives emphasized that the Budget should prioritize offering affordable long-term capital, improving credit access, and providing targeted tax incentives for technological advancements, automation, and AI integration.

Additionally, expanding PLI schemes to include more sectors, tax benefits related to Industry 4.0, rationalizing customs duties on essential raw materials, and expediting clearances at industrial parks, SEZs, and industrial clusters were also recommended.

The survey highlighted the strong connection between manufacturing growth and the health of MSMEs, with 55% of respondents identifying as MSMEs.

“Challenges such as delayed payments and working capital shortages were marked as the most pressing issues for MSMEs, underscoring the need for cash-flow-based lending, green-channel credit linked to GST and e-invoice data, along with incentives for prompt payments,” the findings indicated.

The survey report suggested that the Union Budget 2026-27 should focus on execution-oriented reforms, rationalizing compliance frameworks, and deploying specific fiscal incentives to stimulate private investment, bolster MSMEs, and facilitate manufacturing scalability.

Regarding taxation, respondents pointed out ongoing compliance difficulties, with many agreeing that the intricate TDS and TCS provisions impose a considerable cash-flow and administrative burden. Over half of the participants opined that the new Income Tax Act, 2025, would only partially achieve its goals of simplification and clarity.