Manufacturers Call for Reforms: How the 2026-27 Budget Can Boost 'Make in India'

A survey by Assocham reveals major challenges in manufacturing, highlighting compliance burdens and energy costs. Industry leaders urge government reforms in the 2026-27 Budget to boost the 'Make in India' initiative, with a call for cheaper capital and tax incentives for technology and automation advancements.

Industry stakeholders have identified numerous challenges facing the manufacturing sector, citing high compliance burdens, energy costs, and restricted access to long-term capital as significant constraints. These findings are part of a survey conducted by Assocham.

In anticipation of the 2026-27 Budget, business leaders are calling on the government to enhance the 'Make in India' initiative by taking concrete steps to boost domestic manufacturing. The survey, which involved 120 respondents spanning various sectors such as manufacturing, services, and IT, revealed that 55% remain optimistic about the business outlook, although 13% express pessimism and 32% maintain neutrality.

While government measures like GST reforms and PLI schemes are seen as promising, their impact remains insufficient. Industry leaders recommend execution-oriented reforms, rationalising compliance frameworks, and deploying fiscal incentives to spur growth, particularly focusing on the manufacturing sector, MSMEs, and technology adoption.

(With inputs from agencies.)