CII eyes budget-led infra, R&D push

India Budget: The Confederation of Indian Industry (CII) has urged the government to leverage the upcoming Union Budget 2026–27 to sustain India’s position as the world’s fastest‑growing major economy, recommending a slew of reforms across infrastructure, innovation, digital systems and the financial sector.CII noted that business confidence remains high, with its Business Confidence Index rising to 66.5 in Q3FY26 — the highest in five quarters — driven by optimism around domestic demand, profitability, and investment conditions. Two-thirds of firms reported higher demand in Q2FY26, while 72% expect further growth in Q3FY26, aided by GST rate cuts and festive consumption.Also Read: This Budget could be the spark behind India’s AI power shift“The steady rise in business confidence shows industry’s ability to navigate external headwinds, anchored by resilient domestic demand and a robust reform agenda,” said CII Director General Chandrajit Banerjee. He added that India’s growth momentum could be strengthened further through decisive action in the Budget.Central to CII’s recommendations is sustaining capital expenditure through a revitalised Rs 150 lakh crore National Infrastructure Pipeline 2.0, focused on shovel-ready, revenue-generating projects and streamlined dispute resolution to accelerate execution and crowd in private investment.On the innovation front, CII proposes 10 Centres of Advanced Learning and Research in frontier domains such as AI, robotics, clean energy, and biotechnology, with a matched public-private funding model. A complementary India Talent Agency could attract global talent and diaspora researchers to strengthen India’s knowledge economy.Budget 2026 Expectations Live: The EV industry seeks fiscal & policy reforms, review of PLI scheme, R&D and tax incentivesCII also emphasised boosting digital governance via a Rs 1,000-crore Digitisation Fund, aimed at simplifying compliance through paperless, presence-less systems, enabling real-time data flow, and enhancing ease of doing business.For trade and exports, the industry body recommended a simplified three-tier tariff structure to improve competitiveness, integrate India into global value chains, and promote export diversification.On financial sector reforms, CII suggested strengthening Development Financial Institutions, enabling selective NBFC-to-bank transitions, allowing calibrated foreign equity, encouraging new well-capitalised banks, and consolidating weaker institutions. It also called for accelerating asset tokenisation across real estate, infrastructure, and financial assets, building on RBI and IFSCA pilots, and expanding regulatory sandboxes in GIFT City.Follow our budget page for more live updatesHe added that sustained reform and a strong industry-government partnership would allow India to maintain world-leading growth while ensuring opportunity reaches every household.