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CII Urges Investment-Led FY27 Budget With Higher Capex and NIP 2.0

The plan seeks to shift focus from short-term demand boosts toward measures that crowd in private and foreign capital.

Overview

  • CII proposes a 12% increase in central capital expenditure and a 10% rise in capex support to states for FY27, paired with a Capital Expenditure Efficiency Framework to prioritise and track high-impact projects.
  • It recommends launching a Rs 150 lakh crore National Infrastructure Pipeline for 2026–32 to give investors and states long-term project visibility.
  • The blueprint calls for moving from rigid annual deficit targets to an economic‑cycle‑based public debt framework to enhance fiscal flexibility and credibility.
  • To spur private investment, CII suggests incremental tax credits, simpler compliance, and reinstating accelerated depreciation to support modernisation, especially for MSMEs and manufacturing.
  • For foreign and diaspora capital, it urges an NRI Investment Promotion Fund with partial government stake, stronger NIIF via a Sovereign Investment Strategy Council, easier ECB norms, time‑bound single‑window FDI clearance within 60–90 days, and an India Global Economic Forum.