New Delhi: The Confederation of indian industry (CII) has given a positive reaction to the Union Budget 2026–27 presented by Finance minister Nirmala Sitharaman, commending the government’s focus on fiscal discipline and a continued push for infrastructure capital expenditure which industry leaders say will support sustained economic growth.

Industry Sees Budget as Growth‑Oriented and Stable

CII President Rajiv Memani described the Budget as broadly responsive to the needs of industry, noting that the fiscal roadmap addressed key concerns for businesses while also balancing macroeconomic stability. The industry group highlighted two central themes in its praise:

· Fiscal Prudence: CII welcomed the government’s attempt to maintain fiscal discipline even as public spending increases, a balance that is considered crucial for long‑term investor confidence and sustainable economic leadership.

· Capex Momentum: The Budget ramped up capital expenditure (capex) to ₹12.2 lakh crore for the fiscal year 2026–27 — an increase of around 9% compared with the previous year — reinforcing the government’s push to drive infrastructure‑led growth.

Memani noted that the capex focus was data-aligned with industry demands, including those of micro, small, and medium enterprises (MSMEs), which see expanded government investment as a catalyst for wider economic activity. The CII also pointed out attention to tax simplification and services sector support as positive takeaways from the Budget.

Why CII’s Endorsement Matters

The CII is one of India’s largest industry bodies, representing thousands of businesses across manufacturing, services and exports. Its strong endorsement sends a signal to:

· Investors: That the Budget’s mix of prudence and spending can help sustain macroeconomic stability while promoting growth.

· Businesses: That increased public investment — particularly in infrastructure — is likely to improve logistics, connectivity and market opportunities.

· Credit Markets: That a disciplined fiscal path with controlled deficit projections provides long‑term clarity on government finances.

This praise comes alongside broader positive market reactions to the Budget’s major infrastructure and growth‑oriented measures, including steps to raise high‑speed rail corridors and targeted sector incentives.

🔎 In summary:
CII’s response highlights a balanced industry view — appreciating the government’s commitment to fiscal discipline, while backing the significant capital expenditure push that could catalyze development and generate broader economic activity in the coming year.

 

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