New Delhi, Jan 26 (AHN) As India approaches Union Budget 2026-27, industry sentiment points to a clear shift from headline announcements to policy direction, continuity and execution, a survey showed on Monday.

Against global uncertainty and a calibrated fiscal consolidation path towards a deficit of about 4.4 per cent of GDP, Budget 2026 is being read as a signal of India’s medium-term economic intent, according to Grant Thornton Bharat’s ‘Pre Budget Survey 2026’.

With the economy expected to grow at around 6.5–7 per cent in FY26 and central government capital expenditure now more than three times its FY20 level, companies making long-term decisions on capacity, supply chains and decarbonisation are seeking stable policy frameworks, practical incentives and smoother execution rather than incremental or short-term measures.

On fiscal strategy, respondents favour a calibrated approach. While 35 per cent believe growth and employment should be prioritised even if fiscal consolidation slows, 28 per cent call for a balance between deficit control and growth-oriented spending, the findings showed.

A further 26 per cent stress strong fiscal prudence to sustain investor confidence, reflecting broad support for discipline without sacrificing momentum.

For trade, a simplified and predictable export-incentive framework is the top priority (40 per cent), followed by the conclusion of free trade agreements with key partners (31 per cent).

Businesses are focused on minimising disruption during the transition to the New Income Tax Act. Extending transition timelines with relaxed penalties (28 per cent), dedicated support channels (26 per cent) and sector-wise government–industry consultations (25 per cent) are the most sought-after forms of support.

For salaried taxpayers, 44 per cent believe lower tax rates or wider slab intervals are the most effective way to improve the attractiveness of the new regime, followed by the introduction of limited deductions (26 per cent).

Sector-specific innovation funds and weighted tax deductions for R&D (each supported by 30 per cent of respondents) emerge as the most effective tools, followed by public–private partnerships in research, underlining the importance of measures that directly lower the cost and risk of innovation, said the survey.

Long-term infrastructure investment is driven more by certainty than incremental incentives.

A stable tax regime for InvITs, REITs and infrastructure bonds is identified by 41 per cent of respondents as the most important trigger for attracting long-term capital.

This is followed by tax certainty for PPP and hybrid structures (23 per cent) and streamlined cross-border funding approvals (19 per cent).

“Renewable energy and storage infrastructure is the top priority area (43 per cent), reflecting the clean-energy transition, followed by urban infrastructure (26 per cent) and transport and logistics (21 per cent).

On ease of doing business, 40 per cent of respondents prioritise streamlining compliance and licensing, while 33 per cent seek time-bound service delivery obligations on public authorities.

Reducing tax uncertainty and faster dispute resolution are important but secondary to upfront regulatory clarity and process efficiency, the survey found.

"Across tax, trade and customs, the survey points to a consistent theme: businesses are seeking greater clarity and predictability. Whether it is the transition to a new Income-tax Act, GST administration or digital integration in customs, the emphasis is on stable frameworks, smoother implementation and reduced compliances,” said Richa Sawhney Partner, Tax Grant Thornton Bharat.

On customs, alignment of classification and origin norms with global standards (39 per cent) and reduced duties on strategic manufacturing inputs (30 per cent) are seen as the most effective measures to enhance competitiveness, alongside the need for a predictable duty roadmap, said the survey.

—AHN

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