Pro-Growth and Ease of Doing Budget FY 2027: PHDCCI

New Delhi, February 1, 2026: We appreciate that the Union Budget 2026-27 is dedicated to ‘Three Kartavya’ which include accelerate and sustain economic growth, fulfil the aspirations of people making them strong partners in India’s path to prosperity, and ensure inclusive access to growth opportunities to further strengthen India’s economic and social foundations amid global uncertainty said Rajeev Juneja, President, PHDCCI, in a press statement issued here today.

The capital expenditure of Rs 12.2 lakh crore will boost the infrastructure sector that will contribute in removing supply chain hurdles. This estimate is close to PHDCCI Pre Budget Suggestions 2026-27 of Rs.12.98 crore submitted to the Ministry of Finance, GOI, he said.
 
Following the fiscal prudence path of debt consolidation as announced in 2021-22, the fiscal deficit has achieved the target of below 4.5%. The fiscal deficit stood at 4.4% (Revised Estimates) for FY 2026 and is estimated at lower level in FY 2027 at 4.3% (Budget Estimates), he said.
 
Under first kartavya, the focus is on key six areas, including Scaling up manufacturing in seven strategic and frontier sectors, rejuvenating legacy industrial sectors, creating champion MSMEs, delivering a powerful push for infrastructure, ensuring long-term security and stability and developing city economic regions. This will sustain long term economic growth by increasing the contribution of manufacturing in GDP, he said.
 
To cater to expanding financial needs of MSMEs, the Budget has allocated Rs 10,000 crore to SME growth fund and has created a top up self-reliant India fund with Rs 2,000 crore to create champions among MSME, he said.
 
By strengthening services-led employment and aligning education with industry needs in second kartavya, this will expand job opportunities, boost productivity, and, drive inclusive, sustainable economic growth. Further, a proposed high-powered Education-to-Employment Standing Committee will guide services sector growth, he said.
According to the third kartavya, inclusive growth through higher farm incomes, women-led enterprises, and targeted regional development will strengthen rural demand, expand entrepreneurship, and build a more resilient and balanced economy, said My Juneja.
Notably, a dedicated program is proposed for Indian cashew and cocoa which will boost production and processing of high value crops, enhance export competitiveness and transform Indian cashew and Indian cocoa into premium global brands by 2030, he said.
PHDCCI welcomes the direct tax reforms, including the simplified Income Tax Act, reduced TCS rates, and lower MAT, this will enhance tax certainty, ease compliance, and improve India’s investment climate.
 
Measures to reduce litigation and support small taxpayers will free up capital, boost consumer confidence, and support sustained economic growth, he said.
 
To increase competitiveness and export of labour intensive goods which include marine and leather products, the limit for duty-free imports of specified inputs used for processing seafood products for export has been increased, he said.
Marrying clean energy with Semiconductor manufacturing, the budget announced the basic customs duty exemption to capital goods used for manufacturing Lithium-Ion Cells for batteries to increase the domestic manufacturing of solar glasses. Also, the basic duty exemption provided to nuclear power projects is extended to 2035 to support the clean energy initiative, said Dr Ranjeet Mehta, CEO & Secretary General, PHDCCI.