New Delhi, January 22, 2026 – The Federation of Indian Chambers of Commerce and Industry (FICCI) has unveiled its pre-budget survey for 2026-27, revealing a robust optimism among India’s business leaders. Despite global headwinds, industry executives express strong faith in the nation’s economic trajectory, with nearly 80% of respondents confident about India’s growth prospects.
A significant 50% anticipate GDP growth between 7% and 8% for the upcoming fiscal year 2026-27. This positive outlook underscores the resilience of India’s economic fundamentals amid international uncertainties. Moreover, 42% believe the current fiscal year’s fiscal deficit target of 4.4% of GDP will be met, signaling trust in the government’s fiscal prudence.
Industry priorities for the budget are clear: job creation, sustained infrastructure development, and robust export support. Key sectors highlighted include infrastructure, manufacturing, defense, and MSMEs. Businesses urge continued focus on manufacturing and capital expenditure. For electronics, establishing a mega cluster integrating OEMs, EMS firms, and component suppliers is deemed essential for large-scale growth.
In defense, increasing capital expenditure allocation to 30% is recommended to boost manufacturing. Modernization efforts should prioritize frontline assets, UAVs, counter-UAV systems, electronic warfare, and AI capabilities. Proposals include expanding the PLI scheme for drones to ₹1,000 crore and creating a dedicated ₹1,000 crore R&D fund.
Export challenges like global trade tensions, tariff uncertainties, and non-tariff barriers such as CBAM are noted. Recommendations encompass trade facilitation, simplified customs, reduced logistics and port hurdles, enhanced export incentives, and streamlined refunds.
On direct taxes, demands include simplifying compliance, advancing digitalization, ensuring tax certainty, expediting dispute resolution, and reducing litigation. Emphasis is also on easing corporate restructuring and investor facilitation.
Overall, FICCI’s survey reflects industry’s expectation of a balanced budget that fuels growth, employment, and competitiveness. This presents an opportunity to strengthen India’s position in global value chains through structural reforms while maintaining fiscal discipline.
