New Delhi, Feb 1 (NationPress) The Confederation of Indian Industry (CII) expressed its approval on Sunday regarding the Union Budget 2026-27, which incorporates innovative reforms that bolster confidence and emphasizes public capital expenditure to stimulate private investment.

CII acknowledged the sustained emphasis on fiscal prudence, highlighting the fiscal deficit goal of 4.3 percent of GDP for FY27, which reinforces trust in India’s macroeconomic governance.

"There is widespread acknowledgment of fiscal discipline, including adherence to the debt-to-GDP glide path aiming for 50 percent of GDP by FY31, while balancing this with a flexible policy attuned to economic realities," stated the industry organization.

The rise in public capital expenditure to Rs 12.2 lakh crore, with effective capital expenditure surpassing Rs 17 lakh crore, is anticipated to attract private investment, bolster infrastructure, and enhance productivity across various sectors.

"Amid increasing global uncertainty, the Budget delivers a reassuring message of continuity, credibility, confidence, and a long-term vision for India’s developmental path," remarked Chandrajit Banerjee, Director General of CII.

Furthermore, the focus on high-quality infrastructure—through initiatives such as new freight corridors, expansion of inland waterways, and high-speed rail networks, along with a proposed infrastructure risk guarantee framework—will significantly boost logistics efficiency and lower the cost of doing business.

CII also pointed out that the focus on sectors like semiconductors, biopharma, chemicals, capital goods, textiles, sports goods, critical minerals, and electronics is both timely and in sync with India’s ambition to become a global manufacturing hub.

The enhancement of the India Semiconductor Mission, support for critical minerals, and revitalization of industrial clusters will help deepen domestic value chains, reinforce self-reliance, and boost export competitiveness.

Moreover, the industry body expressed its approval of the robust backing for MSMEs, which includes a Rs 10,000 crore SME Growth Fund, augmented credit support through TReDS, and simplified compliance mechanisms that will facilitate access to finance and formalization.

Additionally, CII praised the focus on the ease of doing business, highlighting risk-based customs clearance, increased digitization, reduced compliance burdens, and enhanced regulatory certainty, all of which will foster a favorable investment climate and expedite project execution.