The Confederation of Indian Industry (CII) has recommended a 12% increase in central capital expenditure and a 10% rise in capex support for states in the forthcoming FY27 Union Budget. To maintain India’s position as a fast-growing economy, the industry body emphasized the need for sustained flows of public, private, and foreign capital. A major proposal includes launching the National Infrastructure Pipeline (NIP) 2.0, worth ₹150 lakh crore, for the 2026-32 period.
To boost private investment, the CII suggested incremental tax credits, compliance relief, and reinstated accelerated depreciation for manufacturing and MSMEs. Director General Chandrajit Banerjee noted that after recent demand-side tax reliefs, private investment must become the next key growth engine. Other recommendations include easing ECB norms, establishing an NRI Investment Promotion Fund, and streamlining FDI clearances.
The industry body also proposed a government-led platform called the “India Global Economic Forum” to facilitate structured dialogue with multinational corporations and institutional investors. By institutionalizing a Capital Expenditure Efficiency Framework, the government can prioritize high-multiplier projects in transport, energy, and green transition. These measures are aimed at defining India’s next development phase through fiscal credibility and structural reforms.