FICCI Survey Reveals Top Priorities for Union Budget 2025-26

Discover key takeaways from the FICCI Pre-Budget Survey 2025-26 as industry leaders express optimism for India's growth. Explore expectations on capital expenditure, tax reforms, and MSME support ahead of the Union Budget.

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Anil Kumar
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FICCI Budget Expectations 2025

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:

  • 64% of respondents are optimistic about India’s economic outlook for FY 2025-26.
  • GDP growth is projected at 6.5%-6.9%, moderating from 8.0% in 2023-24 but staying resilient amid global uncertainties.

2. Fiscal Discipline on Track:

  • 47% believe the government will meet the fiscal deficit target of 4.9% for FY 2024-25.
  • 24% expect an even lower fiscal deficit, signaling confidence in the government’s fiscal management.

3. Key Industry Expectations from Budget 2025-26:

  • Capital Expenditure:

    • 68% of respondents demand sustained public investment, recommending at least a 15% increase in capex allocation.
  • Ease of Doing Business:

    • Over 50% seek reforms in land acquisition, labor laws, and power supply to improve operational efficiency.
  • Taxation Reforms:

    • Calls for lower tax rates and revised slabs to boost disposable income.
    • Simplified tax regimes and incentives for green technologies and EVs are also highlighted.

4. Sectoral Priorities:

  • Infrastructure, manufacturing (Industry 4.0), and agriculture identified as high-focus areas.
  • Special emphasis on MSMEs, with demands for easier credit access and technological support.

5. Export Competitiveness:

  • Industry urges government to improve logistics efficiency and extend schemes like interest equalization to boost exports.

6. Balancing Growth with Resilience:

  • Industry expects the budget to maintain growth momentum while addressing challenges like inflation, geopolitical risks, and supply chain disruptions.

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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:

  1. 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.
  2. 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.
  3. 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.

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