As India approaches the Union Budget 2026 presentation on February 1st, a recent survey highlights a blend of optimism and apprehension regarding the nation's economic trajectory. While confidence in India's growth prospects remains strong, concerns persist about job creation and potential global risks.
The Federation of Indian Chambers of Commerce and Industry (FICCI) conducted a pre-Budget survey for 2026-27, revealing that nearly 80% of respondents are confident in the Indian economy's growth. This confidence stems from government-led capital spending, increasing digital adoption, and incentives for manufacturing that have bolstered growth in recent years. Around half of the survey respondents expect India's GDP growth to remain between 7-8% in the fiscal year 2026-27, demonstrating faith in the country’s fundamental economic strength. PwC forecasts a slightly lower growth of 6.7%, still positioning India as one of the fastest-growing major economies in 2026, driven by high-tech exports, rising real wages, and increased consumer activity.
Despite the overall positive outlook, the survey also indicates areas of concern. Job creation, infrastructure spending, and stronger support for exports are highlighted as key macroeconomic priorities that industry leaders want the upcoming budget to address. The need for policy continuity is seen as crucial for navigating global trade risks.
Global uncertainties, geopolitical tensions, and trade disruptions continue to influence market sentiment. These external pressures add complexity to the economic landscape, making the Budget 2026-27 a critical policy statement for both domestic and global investors. The ongoing trade and tariff war, and the tariffs imposed by the US President Donald Trump, also pose a challenge.
Against this backdrop, Finance Minister Nirmala Sitharaman is set to present the Union Budget 2026, which is expected to focus on propelling India towards significant growth through strategic allocations to various sectors. Key sectors in the spotlight include railways, infrastructure, urban development, manufacturing, automobiles, defense, electronics, MSMEs, renewable energy, and artificial intelligence. Healthcare, tourism, agriculture, and logistics are also likely to receive attention.
Industry experts anticipate that the budget will likely maintain its commitment to fiscal consolidation, with capital expenditure on infrastructure remaining a central pillar. Investment in infrastructure supports employment generation, improves logistics, and fosters long-term economic capabilities. There are also expectations for income tax relief for salaried individuals to ease the burden of rising living costs and boost consumption. Simplification of tax compliance, reduction of disputes, and improvements in GST efficiency are measures that could strengthen business confidence.
The presentation of Union Budget 2026 on February 1st is particularly notable as it falls on a Sunday, a departure from traditional scheduling.
