New Delhi, Jan 22 (NationPress) A recent pre-Budget survey conducted by FICCI revealed a remarkable level of optimism within the industry, as nearly 80 percent of the participants indicated a positive outlook on India's growth prospects.

Almost half of the respondents anticipate that the GDP growth will stay within the 7–8 percent range for FY 2026–27, reaffirming their confidence in India's medium-term fundamentals despite ongoing global challenges.

The survey also highlighted the significance of fiscal responsibility, with about 42 percent of respondents believing that the fiscal deficit target of 4.4 percent of GDP can be met in FY 2025–26, thus reinforcing their faith in the government's fiscal consolidation plans.

According to the findings, three key macroeconomic priorities are emerging for the Union Budget 2026–27: job creation, a consistent focus on infrastructure, and enhanced support for exports. The sectors anticipated to receive attention include infrastructure, manufacturing, defence, and MSMEs, among others.

The report suggests that the government should maintain its emphasis on manufacturing and capital expenditure (capex).

“The establishment of a mega electronics industrial cluster to co-locate OEMs, EMS companies, and component suppliers is crucial for propelling this strategic sector. In addition, a strong focus on defence manufacturing is equally important,” it proposed.

Moreover, it recommends that the government increase the capital outlay share in defence allocations to 30 percent to modernise frontline assets, UAVs, counter-UAV systems, EW systems, and AI-enabled capabilities.

Enhancing the Drone PLI allocation to Rs 1,000 crore and creating a Rs 1,000 crore Drone R&D Fund will provide a boost to this emerging sector.

“Given the rising global trade tensions and uncertainties regarding global tariffs and non-tariff barriers such as CBAM and regulations related to deforestation, the expectation for support for exports in the Union Budget is clearly evident,” the survey stated.

To improve India's export performance and its integration into global value chains, respondents stressed the need for streamlining trade facilitation and customs processes, reducing logistics and port-related obstacles, and enhancing export incentive and refund mechanisms.

The Union Budget is expected to increase allocations under the Remission of Duties and Taxes on Exported Products (RoDTEP) to boost export competitiveness. The industry also anticipates announcements regarding reforms in SEZ policy and further rationalisation of customs tariffs.

Customs tariffs could be further simplified by converging rate slabs into three levels, which would significantly reduce compliance costs and enhance certainty, as per the FICCI survey.

On the direct tax front, key expectations from respondents include simplifying compliance through digitisation, providing tax certainty, and improving dispute resolution and litigation management.