New Delhi, Dec 14 (NationPress) In anticipation of the Union Budget 2026-27, the Confederation of Indian Industry (CII) proposed a detailed six-pronged investment framework rooted in fiscal responsibility, capital optimization, and investor trust.

According to the apex industry organization, sustained investment growth across public, private, and foreign sectors is crucial for maintaining India’s status as one of the world's most rapidly expanding major economies.

Chandrajit Banerjee, Director General of CII, stated, “The upcoming Union Budget 2026–27 must act as both a stabilizer and a growth facilitator, with investment promotion being a vital component in this mission.”

The recommendations focus on enhancing public capital expenditure as the foundation for infrastructure-driven growth, while also unlocking private and foreign investment through targeted incentives, institutional reforms, and improved global engagement.

Firstly, enhancing public investment remains a top priority. Public capital expenditure has been instrumental in driving India’s recovery post-pandemic, fostering infrastructure development and attracting private investments.

To maintain this trend, CII suggests a 12% increase in central capital expenditure and a 10% rise in capex support to states for FY27, with continued focus on high-multiplier sectors like transport, energy, logistics, and the green transition.

To improve project selection and execution, the chamber proposes the establishment of a Capital Expenditure Efficiency Framework (CEEF) to prioritize impactful projects, monitor physical and financial progress, and assess outcomes based on productivity and regional benefits.

CII is also advocating for the launch of a Rs 150 lakh crore National Infrastructure Pipeline (NIP) 2.0 for 2026-32, which would include a definitive list of shovel-ready projects, including PPP ventures, to provide multi-year certainty for investors, developers, and states.

This framework would enhance credibility by aligning fiscal policies with sustainable medium-term debt strategies, according to CII.

Secondly, encouraging private investment will be the next significant focus. While public investment sets the groundwork, private and foreign capital will be the true catalysts for India’s evolution.

Banerjee added, “The Government has already stimulated demand through income tax relief in last year’s Union Budget and more recently with GST 2.0. Investments, particularly from the private sector, will be the next key driver of economic growth that needs to be emphasized in the upcoming fiscal year to sustain momentum.”

Thirdly, to attract long-term capital in priority sectors, CII proposes the creation of a Non-Resident Indian Investment Promotion Fund. This could be a public-private holding entity, with the government retaining up to a 49% stake, channeling NRI, FPI, and institutional investments into sectors such as infrastructure and AI.

The Fund could generate capital via long-term convertible bonds linked to FCNR rates, ensuring secure returns alongside equity potential, and including specialized India Global Diaspora Bonds.

Fourthly, CII recommends strengthening the National Investment and Infrastructure Fund (NIIF) by establishing a Sovereign Investment Strategy Council (SIFC) to align investments with national goals, ensure governance excellence, and benchmark against top global sovereign funds.

Fifthly, streamlining External Commercial Borrowing (ECB) processes, increasing borrowing limits, extending tenures, and offering partial risk coverage for infrastructure and manufacturing projects would facilitate access to global capital while ensuring external sustainability.

A single-window clearance system for significant FDI proposals, supported by dedicated facilitation teams at both the Centre and state levels, with deemed approval within sixty to ninety days, would enhance predictability, reduce administrative delays, and expedite large-scale investments, as noted by CII.

Lastly, to enhance global investor relations, CII recommends the establishment of an India Global Economic Forum as a government-led platform that connects MNCs, sovereign wealth funds, pension funds, private equity, and other institutional investors for structured discussions with senior government officials on emerging investment opportunities across sectors.