Washington, Feb 2 (NationPress) Prominent business organizations from the US and India have expressed their approval of India’s Union Budget for 2026–27. They believe it emphasizes growth, fiscal responsibility, and India’s significance as a vital economic ally for the United States amid global challenges.

The US-India Business Council (USIBC) and the US-India Strategic Partnership Forum (USISPF) noted that the budget highlights India’s dedication to economic expansion, resilience, and international competitiveness, while laying the groundwork for enhanced bilateral commercial and strategic relationships.

Both organizations emphasized that the focus on sustained growth, fiscal prudence, public investments, and reform sends a powerful message to international investors during a time of geopolitical and economic instability. This cements India’s status as one of the world’s fastest-growing major economies and a crucial partner for the United States.

USIBC President Atul Keshap stated that the budget symbolizes “India’s aspiration to maintain its pace as one of the globe’s fastest-growing economies and a key collaborator for the United States in the Indo-Pacific region.”

In welcoming the government’s commitment to maintaining growth at around 7%, fiscal discipline, and public investment, USIBC highlighted these priorities as essential for fortifying India’s long-term growth fundamentals and enhancing bilateral commercial relationships.

They also urged the government to expedite reforms in taxation, business facilitation, and regulatory predictability to boost investor confidence and attract higher levels of foreign investment.

Additionally, USIBC appreciated the emphasis on frontier technologies through initiatives like the India Semiconductor Mission 2.0, the AI Mission, the National Research Mission, the Innovation Fund, and the National Quantum Mission, which reflect India’s ambitions in next-generation technology.

Regarding energy and climate, USIBC pointed out the Rs 20,000 crore Carbon Capture Utilization and Storage program, alongside exemptions on Basic Customs Duty for lithium-ion cell manufacturing, critical mineral processing, and rare earth permanent magnets.

The Council also praised the extension of customs duty exemptions for nuclear power projects until 2035. In the healthcare and services sector, USIBC acknowledged the efforts to strengthen the care economy, focusing more on mental healthcare, Divyangjans, and cancer treatment.

Commending the union budget for fostering sustained growth, job creation, and enhanced ease of doing business, USISPF noted its alignment with technology-driven reforms and sectoral competitiveness, which strengthens India’s appeal as a global investment hub.

The Forum specifically lauded comprehensive customs reforms aimed at modernizing trade processes and enhancing logistical efficiency.

USISPF highlighted the implementation of end-to-end digital and technology-driven solutions, including AI-powered non-intrusive inspections, phased scanning of all containers at major ports, and the expansion of the Single Window mechanism for express cargo, which will minimize dwell times and optimize cargo movement.

On tariffs, USISPF stated that targeted customs duty adjustments support India’s manufacturing and energy transition objectives.

They noted that the basic Customs Duty has been reduced to zero for critical minerals, solar manufacturing inputs, capital goods for lithium-ion battery energy storage systems, nuclear power equipment, selected electronics and aircraft components, MRO raw materials, and specific critical drugs and medicines.

USISPF welcomed reforms in direct taxation and transfer pricing, including simplifying transfer pricing and safe-harbor rules to reduce litigation for the IT services sector and Global Capability Centres.

“The Budget offers a long-term tax holiday until 2047 for cloud services provided through local data centers,” USISPF remarked, describing it as a landmark policy that could stimulate global investment and long-term job creation.