The industry has demanded strong support for exports amidst challenges such as global trade conflicts, tariffs, and non-tariff barriers (such as CBAM and deforestation-related regulations).
Prior to the Union Budget 2026-27, a recent FICCI survey says that the budget should keep job creation and giving a boost to exports as its top priority areas, especially in the backdrop of increasing uncertainties in global trade. The majority of participants in the survey expressed confidence in the country’s medium-term growth prospects. While nearly half of the participants were of the view that GDP growth would remain in the 7-8 per cent range in fiscal year 2026-27, 80 per cent sounded optimistic regarding the country’s growth potential. Conducted between the end of December 2025 and January 2026, the survey included responses from approximately 100 companies.
Stronger Export Push Required in the Budget
The industry has demanded strong support for exports amidst challenges such as global trade conflicts, tariffs, and non-tariff barriers (such as CBAM and deforestation-related regulations). It has given its recommendations, which include simplifying trade facilitation and customs procedures, reducing logistics and port-related bottlenecks, and strengthening export promotion and refund mechanisms.
FICCI elaborated that the Carbon Border Adjustment Mechanism (CBAM) is a measure taken by the European Union, which aims at putting a fair price on the carbon emitted in the production of carbon-intensive products, including steel, aluminium, and cement, while encouraging cleaner production in non-EU countries.
Demand for Increased Allocation
The industry expects an increase in the allocation under RoDTEP (Remission of Duties and Taxes on Exported Products) in the budget to give a boost to export competitiveness. Along with this, notable enhancements in the SEZ policy and rationalisation of customs tariffs were also considered necessary. The survey underlines three main macroeconomic priorities of the Union Budget, including:
- Job creation
- Continued emphasis on infrastructure
- Strong support for exports
These Sectors Need Targeted Attention
According to the industry, special attention should be given to the infrastructure, manufacturing, defence, and MSME sectors. Emphasis has also been put on the importance of fiscal discipline, with approximately 42 per cent of participants predicting a fiscal deficit of 4.4 per cent of GDP in FY 2025-26.
