Industry Calls for Boost in Domestic Manufacturing in 2026-27 Budget

A pre-Budget survey by ASSOCHAM highlights the need to prioritize domestic manufacturing in the Union Budget 2026-27, identifying high compliance burdens and capital access as main challenges. Stakeholders express optimism about business growth, emphasizing tax incentives and infrastructure development for advancing the 'Make in India' vision.

Industry stakeholders have identified boosting domestic manufacturing as a top priority for the Union Budget 2026-27, according to a pre-Budget survey conducted by the Associated Chambers of Commerce and Industry of India (ASSOCHAM). High compliance burdens, logistics costs, and limited long-term capital remain primary hurdles, urging focus on the 'Make in India' initiative.

The survey indicates that 55% of professionals across diverse sectors such as manufacturing, IT, and infrastructure remain optimistic about economic prospects over the next year. Key priorities include strengthening MSMEs, simplifying tax systems, and advancing infrastructure, logistics, and digital growth initiatives. The effectiveness of current government measures, like PLI schemes, remains a concern.

Respondents call for the Union Budget to facilitate cheaper long-term capital, targeted tax incentives for technology upgrades, and broader PLI schemes. The close relationship between manufacturing growth and MSME health was highlighted, with demands for improved cash flow management, streamlined tax compliance, and incentives to stimulate private investment and manufacturing scalability.

(With inputs from agencies.)