FICCI’s survey results ahead of Union Budget 2025-26 noted that about 64 per cent participants expressed optimism regarding India’s growth prospects. Nearly 60 per cent of participants projected a GDP growth rate between 6.5 and 6.9 per cent for 2025-26. Though the numbers mark a moderation from the high growth of over 8.0 per cent witnessed in 2023-24 – it is sync with persistent headwinds on account of external factors. The Government’s commitment to fiscal consolidation has put us in good stead and the survey participants expected the government to remain on that course. About 47 per cent of participants expected the government to meet the fiscal deficit target of 4.9 per cent for FY 2024-25 and another 24 per cent reporting that the government could improve and report a lower fiscal deficit number for the current year. The current round of FICCI’s Pre-budget 2025-26 Survey was conducted between late December 2024 and mid-January 2025. The survey drew responses from over 150 companies spanning across diverse sectors, offering a comprehensive insight into India Inc’s sentiments amidst moderating economic growth.

A significant focus of the survey was on macroeconomic policy interventions. Majority of respondents highlighted the need for sustaining public capital expenditure, with 68 per cent calling for a thrust on capex to sustain the growth momentum. At least a 15 per cent increase in capex allocation for FY 2025-26 is being looked forward to by members of Indian industry. Additionally, over half of the respondents emphasized the importance of reforms to further enhance the ease of doing business. Reforms pertaining to factors of production - particularly with respect areas like land acquisition, labor regulations, and power supply – remain important. The last year’s Union Budget had indicated a roadmap on the next generation reforms – the industry members look forward to further guidance on the same.

Further, concern was expressed regarding the muted demand situation. A significant number of industry members have called for a review of the direct tax structure. A relook at the slabs and the tax rates is warranted as this could leave more money in the hands of people and spur consumption demand in the economy, the survey noted. Respondents also called for a strong policy push on simplifying the tax regime, incentivizing the development of green technologies/renewables and EVs, and easing compliances through digitization.