Industry Calls for Stronger Focus on Execution in Upcoming Budget to Boost Domestic Manufacturing

Overview The domestic industry is pushing for a more execution-driven approach to the ‘Make in India’ initiative in the upcoming Union Budget 2026–27. They've highlighted several challenges, including high compliance burdens and limited access to long-term capital, which are hindering production growth in India.

Key Developments

• A pre-Budget survey by the Associated Chambers of Commerce & Industry of India (ASSOCHAM) revealed that boosting domestic manufacturing is the top priority for achieving Aatmanirbhar and Viksit Bharat.
• Strengthening MSMEs and simplifying tax and compliance systems ranked high on the industry's wish list, alongside infrastructure development and job creation.
• The survey showed cautious optimism among businesses, with 55% of respondents expecting improved conditions in the next year, while 32% remained neutral and 13% were pessimistic.

Business Impact This push for a stronger focus on execution could lead to significant changes in how manufacturing is approached in India. If the government responds positively, it might ease some of the burdens currently faced by industries, potentially boosting production and economic growth.

Market Context The sentiment among businesses appears to be cautiously optimistic, reflecting a mix of hope and uncertainty about the future. The survey results indicate a willingness to adapt and improve, which could influence market dynamics in the coming months.

Industry Context The ‘Make in India’ initiative has been a cornerstone of the government's strategy to enhance domestic manufacturing. However, challenges like compliance and capital access remain critical issues that need addressing to realize its full potential.

Looking Ahead As the budget approaches, all eyes will be on how the government plans to tackle these industry concerns and whether it will implement measures that can truly support domestic manufacturing.