Is 80% of the Industry Confident in India’s Growth Prospects? FICCI Pre-Budget Survey
Synopsis
A recent survey by FICCI reveals that optimism is high within the industry, with a staggering 80% of respondents confident in India's growth trajectory. This article delves into the key findings of the survey, outlining the priorities for the upcoming Union Budget and the sectors expected to thrive.
Key Takeaways
80% of industry leaders are optimistic about India's growth.
GDP growth is expected to be in the 7–8% range for FY 2026–27.
Key priorities for the Union Budget include job creation and infrastructure .
Increased defense allocation is suggested for modernization.
Strengthening export incentives is crucial for competitiveness.
New Delhi, Jan 22 (NationPress) A recent FICCI pre-Budget survey has showcased significant optimism within the industry, revealing that approximately 80 percent of participants expressed confidence in India's growth trajectory.
Almost half of the surveyed individuals anticipate that GDP growth will remain within the 7–8 percent range for FY 2026–27, emphasizing their trust in India's medium-term economic fundamentals, even amidst ongoing global uncertainties.
The FICCI survey also highlighted the necessity for fiscal discipline, with around 42 percent of participants believing that the fiscal deficit target of 4.4 percent of GDP will be met in FY 2025–26, further bolstering confidence in the government's fiscal consolidation strategy.
“Three major macroeconomic priorities are evident for the Union Budget 2026–27: job creation, a continuing focus on infrastructure development, and enhanced support for exports. The sectors identified as crucial include infrastructure, manufacturing, defense, and MSMEs,” the findings indicated.
The report suggests that the government should persist in prioritizing manufacturing and capital expenditure.
“Establishing a large electronics industrial cluster to co-locate OEMs, EMS firms, and component suppliers is essential for advancing this strategic sector. Equally critical is an emphasis on defense manufacturing,” it recommended.
It added that the government should also increase the capital outlay for defense allocations to 30 percent to modernize critical assets, including UAVs, counter-UAV systems, EW systems, and AI-enabled capabilities.
Moreover, boosting the Drone PLI allocation to Rs 1,000 crore and creating a Rs 1,000 crore Drone R&D Fund would significantly benefit this developing sector.
“In light of escalating global trade tensions, uncertainties regarding global tariffs, and non-tariff barriers like CBAM and deforestation regulations, expectations for support to exports in the Union Budget are clearly apparent,” the survey noted.
To enhance India's export performance and integration into global value chains, respondents emphasized the importance of streamlining trade facilitation and customs procedures, alleviating logistics and port-related bottlenecks, and strengthening export incentive and refund mechanisms.
It is advised that the Union Budget increase allocations under the Remission of Duties and Taxes on Exported Products (RoDTEP) to bolster export competitiveness. The industry is also anticipating announcements regarding reforms in SEZ policy and further simplification of customs tariffs in the upcoming budget.
The customs tariffs could be simplified by consolidating rate slabs to three levels, thereby significantly streamlining the system, providing certainty, and lowering compliance costs, as per the FICCI survey.
Regarding direct taxation, respondents expressed key expectations such as simplifying compliance through digitization, ensuring tax certainty, and improving dispute resolution and litigation management.
Point of View
I believe this survey highlights a pivotal moment for India’s economy. The confidence expressed by industry leaders reflects a collective optimism that must be harnessed through effective policy-making. The government has an opportunity to lay a robust foundation for sustainable growth, which is crucial for national progress.
NationPress
14 Jul 2026
Frequently Asked Questions
What percentage of industry respondents are confident in India's growth?
Approximately 80% of respondents in the FICCI pre-Budget survey expressed confidence in India's growth prospects.
What are the key priorities for the Union Budget according to the survey?
The key priorities include job creation, infrastructure development, and enhanced support for exports.
What is the expected GDP growth range for FY 2026-27?
Nearly half of the participants expect GDP growth to remain in the 7–8 percent range for FY 2026–27.
What recommendations were made regarding defense allocations?
The report suggests increasing the capital outlay for defense allocations to 30 percent to modernize vital assets.
How can export competitiveness be improved according to the survey?
Enhancing allocations under the Remission of Duties and Taxes on Exported Products (RoDTEP) is recommended to improve export competitiveness.
