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CII Proposes Bold Budget Reforms for Investment Surge
14 Dec, 2025
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.
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.
CII also advocates for fiscal prudence, proposing an economic-cycle-based public debt framework to enhance resilience against global shocks. The recommendations emphasize strengthening institutional reforms, simplifying external borrowing processes, and creating a single-window clearance for large FDI proposals. These initiatives collectively aim to boost investor confidence and maintain India's position as a rapidly growing economy.
