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Can India's Growth Momentum Outpace Global Uncertainties?
Industry Optimistic About India’s Growth Ahead of Union Budget: FICCI Pre-Budget Survey 2025-26
As the Union Budget 2025-26 approaches, optimism abounds within India’s industrial sectors. The FICCI Pre-Budget Survey 2025-26, conducted between late December 2024 and mid-January 2025, highlights robust confidence in the nation’s economic trajectory despite global uncertainties.
The survey engaged over 150 companies spanning key sectors, revealing that 64% of respondents are confident about India’s economic outlook for the upcoming fiscal year. While a moderation in GDP growth is anticipated—down from 8.0% in 2023-24 to a projected 6.5%-6.9% in 2025-26—the sentiment remains optimistic, reflecting resilience amid geopolitical risks and inflationary pressures.
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Highlights from the FICCI Pre-Budget Survey 2025-26
1. Industry Confidence in Growth:
2. Fiscal Discipline on Track:
3. Key Industry Expectations from Budget 2025-26:
4. Sectoral Priorities:
5. Export Competitiveness:
6. Balancing Growth with Resilience:
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Fiscal Discipline and Economic Strategy
Industry stakeholders are largely supportive of the government’s fiscal discipline. Nearly 47% believe the fiscal deficit target of 4.9% for FY 2024-25 will be met, with 24% expecting even stronger performance. This endorsement underscores confidence in India’s ability to balance growth with economic resilience.
Industry Expectations: Top Priorities for Budget 2025-26
The survey highlighted several key areas where industries expect government intervention:
-
Capital Expenditure Push:
- A significant 68% of respondents emphasized the need for increased public investment, recommending at least a 15% hike in capex allocation to drive infrastructure and economic momentum.
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Ease of Doing Business:
- Over 50% of participants called for reforms in land acquisition, labor laws, and electricity supply to enhance operational efficiency. Progress on next-gen reforms from previous budgets is also eagerly awaited.
-
Taxation Reforms:
- With muted consumption demand, the industry is advocating for lower direct tax rates and revised income tax slabs to boost disposable incomes and consumption.
- Specific calls were made for:
- Simplification of tax regimes
- Incentives for green technology, renewables, and EVs
- Rationalization of TDS provisions and custom duties
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Focus on Sectoral Growth
Infrastructure, manufacturing (especially Industry 4.0), and agriculture emerged as critical areas for development. The MSME sector received special attention, with nearly 40% stressing the need for easier credit access and technological support to drive sustainability and employment.
Export-oriented industries, meanwhile, urged the government to boost logistics efficiency and enhance schemes like interest equalization to strengthen global trade competitiveness.
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A Balanced Approach for the Future
The survey reflects a consensus: the Union Budget 2025-26 must strike a balance between fostering growth and safeguarding economic resilience. As the first full budget of the new government, it presents a strategic opportunity to solidify India’s global economic position, attract foreign investment, and chart a roadmap for sustainable development.
With industry expectations set high, all eyes are on the upcoming budget to deliver policies that accelerate growth, empower businesses, and build a stronger, more resilient India.