India Inc expects 7-8% GDP growth riding on jobs, exports and capex: FICCI
FICCI's pre-Budget survey of nearly 100 companies reveals corporate India's optimism for 7-8% GDP growth in FY26, with around 50% of respondents expecting this range while 42% believe the government will meet its 4.4% fiscal deficit target. Job creation has emerged as the top priority, with over 70% flagging employment generation as crucial amid pressure on labour-intensive sectors from higher US tariffs. Industry seeks comprehensive export support including trade facilitation, customs rationalization, and stronger incentive mechanisms to counter challenges like EU's carbon border adjustment mechanism and other non-tariff barriers.
*this image is generated using AI for illustrative purposes only.
As the Union Budget approaches, corporate India is pressing for policy measures that can accelerate job creation, strengthen exports and sustain growth momentum, while maintaining fiscal discipline amid rising global trade and tariff pressures. A pre-Budget survey by the Federation of Indian Chambers of Commerce & Industry (FICCI) reveals cautious optimism about India's growth trajectory, despite a fragile global economic environment.
Growth Expectations and Fiscal Confidence
The FICCI survey, conducted among nearly 100 companies across sectors, presents encouraging projections for India's economic performance. Key findings from the survey include:
| Parameter | Percentage of Respondents | Details |
|---|---|---|
| GDP Growth Expectation (7-8%) | ~50% | For FY26 |
| Fiscal Deficit Target Confidence | 42% | Meeting 4.4% target in FY26 |
| Survey Coverage | Nearly 100 companies | Across multiple sectors |
FICCI's past president Naina Lal Kidwai emphasized that the survey reflects strong industry belief that India can sustain high growth while maintaining control over public finances.
Employment Generation Takes Center Stage
Job creation has emerged as the paramount concern for Indian industry ahead of the Budget announcement. The survey data reveals the critical importance placed on employment:
- Over 70% of respondents identified employment generation as the most important macroeconomic theme
- Labour-intensive sectors including diamonds, apparel and leather have faced significant challenges due to higher US tariffs
- Industries are seeking urgent policy support to address employment pressures
Kidwai highlighted that the urgency for policy intervention has increased as traditional employment-generating sectors face mounting external pressures.
Export Strategy and Global Integration
Exports are viewed as a dual-purpose lever for both growth acceleration and employment creation. Indian exporters are confronting multiple challenges that require comprehensive policy responses:
Current Export Challenges
- Higher US tariffs affecting key sectors
- European Union's carbon border adjustment mechanism (CBAM)
- Deforestation-related regulatory norms
- Growing array of non-tariff barriers
Industry Expectations from Budget
- Enhanced trade facilitation measures
- Rationalized customs procedures
- Strengthened export incentive and refund mechanisms
- Fixed SEZ policies and simplified customs processes
- Creation of sector-specific clusters, particularly electronics clusters
Kidwai noted that these measures could help India deepen its integration into global value chains while supporting both job creation and manufacturing growth.
Capital Expenditure and Infrastructure Focus
The survey indicates expectations that export-led growth will encourage private capital expenditure over time. Key areas identified for improvement include:
- Better logistics infrastructure
- Reduced port bottlenecks
- Smoother supply chain operations
- Enhanced support for manufacturing and MSMEs
These improvements are considered essential for encouraging private investment, particularly in job-intensive sectors.
Broader Employment Opportunities
Beyond manufacturing and exports, industry leaders see significant employment potential in:
- Services sector: Continued attraction of offshore investment with new centers of excellence
- Tourism industry: Identified as a major untapped employment generator
Reform Priorities and Business Environment
FICCI Director General Jyoti Vij outlined several critical reform areas that remain industry priorities:
| Reform Area | Specific Requirements |
|---|---|
| Cost of Doing Business | Reduction across land, power, and finance |
| Financial Markets | Deeper bond market development |
| Power Sector | Rationalization of cross-subsidies |
| Implementation | Faster state-level reform execution |
| Tax System | Simplified compliance and greater digitization |
| Dispute Resolution | Dual-track system for faster case resolution |
Vij emphasized that while progress has been made in digitization across direct tax, GST and customs, industry seeks further system integration and a common interface to reduce operational friction.
Tax and Compliance Modernization
The survey highlights ongoing concerns about tax administration and compliance:
- Need for simpler compliance procedures
- Better coordination between tax departments
- Resolution of large backlog at Commissioner of Income Tax (Appeals)
- Enhanced tax certainty to improve investor confidence
As Budget day approaches, the message from corporate India is clear: sustaining high growth in a challenging global environment requires sharp focus on employment generation, export competitiveness, and policy predictability, all backed by continued fiscal prudence.
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