India’s next phase of economic growth will depend on steady and strong investment across public, private, and foreign channels, according to the Confederation of Indian Industry (CII). CII, in a release, laid out a detailed plan for the Union Budget 2026-27, saying that the Budget needs to act as both a stabiliser and a growth driver.

CII Director General Chandrajit Banerjee said the coming Budget must focus on boosting investments to keep India’s growth steady. He explained that public spending has pushed the country’s recovery after the pandemic, and that continued support in this area will help India stay on track as one of the fastest-growing major economies.

CII has suggested raising central capital expenditure by 12 per cent and increasing support to states by 10 per cent in FY27. These funds, it said, should go mainly to areas where spending creates the highest impact, such as transport, energy, logistics, and the green transition. CII also recommended creating a Capital Expenditure Efficiency Framework to help select and track important projects and measure their outcomes more clearly. Along with this, it proposed launching a new Rs 150 lakh crore National Infrastructure Pipeline for 2026-32 to give long-term clarity to investors and states.

The release also noted that India needs a more flexible fiscal policy. CII suggested shifting from strict annual deficit rules to a debt framework that adjusts with economic cycles. This, it said, would help the government respond better during shocks without losing long-term stability.

On private investment, CII highlighted that India now needs strong momentum from businesses to support growth. “The Government of India has provided a big demand push via income tax relief in last year’s Union Budget and recently via GST 2.0. Investments, especially private sector investment, will be the next big driver for economic growth that needs to be focused on in the next fiscal to continue the growth momentum,” Banerjee said.

CII recommended tax credits or easier compliance for companies that increase investments or production, along with returning accelerated depreciation to help firms, especially MSMEs, modernise.

To attract long-term global capital, CII proposed creating an NRI Investment Promotion Fund with partial government holding. This fund would help channel NRI and foreign institutional money into areas like infrastructure and AI. It also suggested strengthening the National Investment and Infrastructure Fund through a new Sovereign Investment Strategy Council to guide investments.

CII further called for simpler external borrowing rules and a single-window system for large foreign investment proposals to reduce delays and increase certainty. It also suggested forming an India Global Economic Forum to allow structured discussions between global investors and government leaders.

“An investment-driven growth strategy, anchored in fiscal credibility and institutional reforms, will define India’s next development phase,” Banerjee said.

The Confederation of Indian Industry (CII) has urged the Centre to adopt a wide-ranging set of reforms in the Union Budget 2026-27 to reinforce India’s investment-led growth cycle and sustain its position as one of the world’s fastest-expanding major economies, PTI reported.In a detailed submission for the upcoming Budget, CII recommended raising central capital expenditure by 12% and increasing capex support to states by 10% in FY27, launching a Rs 150 lakh crore National Infrastructure Pipeline (NIP) 2.0 for 2026-32, and introducing incremental tax credits or compliance relaxations for companies achieving notable milestones in investment, output or tax contribution. The industry body also sought an NRI Investment Promotion Fund and the reinstatement of accelerated depreciation benefits to spur fresh capital expenditure, especially for MSMEs and manufacturing sectors, without triggering Minimum Alternate Tax (MAT) liability.CII said strengthening the National Investment and Infrastructure Fund (NIIF) through a proposed Sovereign Investment Strategy Council (SIFC) would help align investments with national economic priorities. The Union Budget for FY27 is scheduled to be presented on February 1.According to the industry chamber, replacing rigid annual fiscal-deficit rules with an economic-cycle-based public debt framework would bolster resilience and allow counter-cyclical flexibility during global shocks, while ensuring the credibility of medium-term debt sustainability.“The forthcoming Union Budget 2026-27 has to serve the dual role of stabiliser and growth enabler, and promoting investments will be one of the most critical components in this regard,” said CII Director General Chandrajit Banerjee.He added that CII’s proposals centre on fiscal prudence, capital efficiency and building investor confidence.CII stressed that public capex has been the backbone of India’s post-pandemic recovery, crowding in private investment. To improve execution, it suggested creating a Capital Expenditure Efficiency Framework (CEEF) for selecting high-impact projects and monitoring outcomes based on productivity and regional growth spillovers.The chamber said facilitating private and foreign investment will be essential in driving the next phase of expansion. It proposed tax incentives linked to new investment and production milestones in high-growth areas such as clean energy, electronics, semiconductors and logistics. It also suggested the creation of an NRI Investment Promotion Fund — a government-private entity with up to 49% government stake — to mobilise overseas and institutional capital into infrastructure and emerging sectors.Further, easing external commercial borrowing norms with higher limits, longer tenures and partial risk cover for infrastructure and manufacturing projects would improve access to foreign capital, CII said. A single-window clearance system with deemed approval within 60-90 days for large FDI proposals was also recommended to accelerate big-ticket investment decisions.To deepen engagement with global investors, CII proposed an India Global Economic Forum — a government-led platform bringing together sovereign wealth funds, pension funds, private equity firms and multinational corporations for structured dialogue with senior policymakers.“An investment-driven growth strategy, anchored in fiscal credibility and institutional reforms, will define India’s next development phase,” Banerjee said.

India is poised to enter a decisive phase of economic expansion that could redefine long-term wealth creation, according to Motilal Oswal Financial Services’ 30th Wealth Creation Study, which projects a sharp acceleration in the country’s economic and consumption landscape over the next 17 years, ANI reported.The study draws a parallel with the last growth cycle, when India’s GDP expanded fourfold from $1 trillion in 2008 to $4 trillion in 2025, and says a similar trajectory could take the economy to $16 trillion by 2042. Unlike the previous phase, which added $3 trillion in absolute GDP, the next leg is expected to add $12 trillion, signalling what the brokerage terms a much stronger wealth-effect that could significantly lift consumption, investment and corporate profitability.A major pillar of this expansion is expected to be the financial services ecosystem, with cumulative household savings estimated at $47 trillion over the period. Banks, NBFCs, insurers, AMCs, wealth managers, capital market platforms and other intermediaries are expected to play a central role in channelling these savings into productive financial assets as households move further towards formal wealth creation avenues.Per capita income, currently around $2,600, is projected to quadruple to $10,400 by 2042, pushing millions of Indians into higher consumption brackets. The study says this transition will strengthen discretionary categories including white goods, food-tech platforms, quick commerce, healthcare, travel, telecom and allied services, accelerating the shift from necessity spending to lifestyle-driven consumption.On automobiles, MoSL highlights significant headroom for growth. Penetration levels of cars, SUVs, two-wheelers and three-wheelers remain well below those of peer economies with similar income levels. As affordability improves and financing deepens, ownership ratios are expected to rise across cities and semi-urban markets.Real estate is also set to be a key beneficiary, with strong demand expected for credible developers, particularly in the premium and luxury segments. Rising household wealth, better affordability and higher preference for quality housing are likely to sustain sectoral momentum.Overall, the study notes that the next 17 years could mark a step-change in India’s economic and wealth trajectory. With expansion taking place on a much larger base, the impact of the wealth-effect is expected to be far deeper than previous cycles, creating long-term opportunities across financial services, consumption-led industries, automobiles and real estate.