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.

New Delhi: For decades, the five-day work week has been the norm for most Indian employees. However, with rising conversations around work–life balance and productivity, many are now wondering if a four-day work week could become a reality in India. Several countries such as Japan, Germany and Spain have already experimented with shorter work schedules and reported encouraging outcomes. Interestingly, recent changes and discussions around India’s labour laws indicate that a four-day work week may be possible for certain sections of the workforce.

What the Labour Ministry Has Said on 4-Day Work Week

The Ministry of Labour and Employment recently clarified on X (formerly Twitter) that a four-day work week is possible under the new Labour Codes. According to the Ministry, employees can work for 12 hours a day for four days, while the remaining three days will be paid holidays. However, the total weekly working hours will still be capped at 48 hours, and any work beyond 12 hours in a day will have to be paid at double the normal wage rate.

Flexible Work Schedule Allowed Under New Labour Codes

The Labour Ministry has said that the revised Labour Codes allow employees to work 12 hours a day for four days, while the remaining three days can be taken as paid holidays, making a four-day work week possible under the new rules.

Weekly Work Hours Cap Remains Unchanged

The Labour Ministry clarified that the total working hours in a week will still be capped at 48 hours, even under a four-day work schedule. It also noted that the 12-hour workday includes breaks and spread-out time, ensuring employees are not working continuously for the entire duration.

What’s New Under India’s Updated Labour Laws

On November 21, 2025, the government consolidated 29 existing labour laws into four new labour codes—the Code on Wages (2019), Industrial Relations Code (2020), Social Security Code (2020), and the Occupational Safety, Health and Working Conditions Code (2020). The move aims to simplify labour regulations while ensuring timely payment of wages, regulated working hours, better workplace safety and wider access to health and social security benefits.

A major change under the new codes is for fixed-term employees. They are now entitled to the same benefits as permanent workers, including leave, health coverage and social security. Notably, fixed-term workers can claim gratuity after just one year of continuous service, instead of the earlier five-year requirement, and must be paid wages equal to permanent employees doing similar work.

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.