What investment reforms is CII proposing for India's Union Budget 2026-27?

CII proposes a 12% increase in central capital expenditure, a Rs 150 lakh crore National Infrastructure Pipeline 2.0, and incremental tax credits for firms achieving investment milestones.

How will CII's proposals boost private investment in India?

CII suggests offering tax credits or compliance relaxations for significant new investments and reinstating accelerated depreciation benefits, especially for MSMEs.

What is CII's stance on fiscal stability for the 2026-27 budget?

CII recommends reinforcing fiscal stability with an economic-cycle-based public debt framework to allow counter-cyclical flexibility and enhance medium-term debt sustainability.

Home / Business and Economy / CII Proposes Bold Budget Reforms for Investment Surge

CII Proposes Bold Budget Reforms for Investment Surge

14 Dec

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Summary

Proposes 12% central capital expenditure hike for FY27.
Recommends a Rs 150 lakh crore National Infrastructure Pipeline 2.0.
Suggests incremental tax credits for firms achieving investment milestones.

CII Proposes Bold Budget Reforms for Investment Surge

The Confederation of Indian Industry (CII) has put forth a detailed investment strategy for India's upcoming Union Budget 2026-27, targeting sustained economic growth. The proposal includes a significant 12% increase in central capital expenditure and a 10% rise in capex support for states, alongside a new Rs 150 lakh crore National Infrastructure Pipeline for 2026-32. These measures aim to bolster public investment as a catalyst for India's development.

To stimulate private and foreign investment, CII suggests implementing incremental tax credits or compliance relaxations for companies achieving substantial milestones in investment, production, or tax contributions. Additionally, the lobby group recommends reinstating accelerated depreciation benefits, particularly for MSMEs, and establishing an NRI Investment Promotion Fund to channel foreign capital into key sectors like infrastructure and AI.