New Delhi [India], December 14 (ANI): The Confederation of Indian Industry (CII) has laid out a detailed investment roadmap for the Union Budget 2026-27, emphasizing that India’s next phase of economic growth will depend on sustained investment across public, private, and foreign channels.
CII Director General Chandrajit Banerjee said the upcoming Budget must focus on boosting investments to maintain India’s growth trajectory. Public spending, he noted, has been a key driver of post-pandemic recovery, and continued support will help India remain one of the fastest-growing major economies.
CII recommended increasing central capital expenditure by 12 per cent and raising support to states by 10 per cent in FY27. These funds, the industry body said, should be channelled into high-impact sectors such as transport, energy, logistics, and the green transition. It also proposed creating a Capital Expenditure Efficiency Framework to select, monitor, and evaluate critical projects more effectively. Additionally, CII suggested launching a new Rs 150 lakh crore National Infrastructure Pipeline for 2026-32 to provide long-term clarity for investors and states.
The release highlighted the need for a more flexible fiscal policy, advocating a shift from rigid annual deficit rules to a debt framework that adjusts with economic cycles. Such flexibility, it said, would allow the government to respond better to economic shocks while maintaining long-term stability.
On private investment, Banerjee stressed that strong business momentum is essential for continued growth. He pointed out that previous measures, including income tax relief and GST 2.0, have provided a demand push, and now private sector investment must take the lead. CII recommended tax credits or simplified compliance for companies increasing investment or production, along with reinstating accelerated depreciation to support MSME modernisation.
To attract long-term global capital, CII proposed creating an NRI Investment Promotion Fund with partial government ownership to channel NRI and foreign institutional funds into sectors such as infrastructure and AI. The organisation also suggested strengthening the National Investment and Infrastructure Fund through a new Sovereign Investment Strategy Council to guide investments.
Further recommendations included simplifying external borrowing rules, establishing a single-window system for major foreign investment proposals, and creating an India Global Economic Forum to enable structured dialogue between global investors and government leaders.
Banerjee concluded, “An investment-driven growth strategy, anchored in fiscal credibility and institutional reforms, will define India’s next development phase.”
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