Indian industries are strongly optimistic about India's growth prospects, as revealed by the Federation of Indian Chambers of Commerce and Industry (FICCI) in its 'Pre-Budget Survey 2026-27'. The survey, which captures industry sentiment and outlines key policy recommendations, indicates that nearly 80% of respondents are confident in the nation's economic trajectory.
The survey identifies job creation as the top priority for the Union Budget 2026-27, followed by sustained infrastructure development and stronger export support. Furthermore, the survey highlights the need for the government to continue its focus on manufacturing and capital expenditure (capex). A substantial 68% of respondents are advocating for a sustained thrust on capex to maintain growth momentum and are looking forward to at least a 15% increase in capex allocation for FY26.
Around half of the survey participants anticipate that India's GDP growth will remain in the 7-8% range in FY 2026-27. This reaffirms faith in India's medium-term fundamentals, despite persistent global uncertainties. The survey also underscores the importance of fiscal prudence, with approximately 42% of respondents expecting the government to achieve the fiscal deficit target of 4.4% of GDP in FY 2025-26, demonstrating confidence in the government's fiscal consolidation roadmap.
Several sectors are expected to receive significant attention in the upcoming budget, including infrastructure, manufacturing, defense, and MSMEs. Over half of the respondents expect infrastructure to receive maximum focus, followed by manufacturing and defense. To further boost the electronics sector, the survey suggests establishing a mega electronics industrial cluster to co-locate OEMs, EMS firms, and component suppliers. Emphasis is also placed on defense manufacturing, with a recommendation to enhance the capital outlay share in defense allocations to 30% to modernize frontline assets, UAVs, counter-UAV systems, EW systems, and AI-enabled capabilities. Moreover, enhancing the Drone PLI outlay to ₹1,000 crore and establishing a ₹1,000 crore Drone R&D Fund would provide a significant boost to the emerging drone sector.
In terms of export support, the survey reveals that 29% of respondents are seeking new incentives and improved refund mechanisms, while 90% desire easier customs regulations. These measures are crucial for enhancing India's global trade position. Additionally, over half of the respondents emphasized the importance of reforms to further enhance the ease of doing business. Specifically, reforms related to land acquisition, labor regulations, and power supply are deemed important.
