USIBC applauds India's Union Budget 2026–27, calls for faster reforms to drive innovation & investment

The President of the US-India Business Council (USIBC), Ambassador (ret.) Atul Keshap welcomed India's Union Budget 2026–27, announced on February 1, 2025. He said the budget reflects the ambition of India to sustain momentum as one of the world’s fastest-growing major economies amid geopolitical uncertainties.

“USIBC welcomes the Union Budget 2026–27, which underscores the Government of India’s continued focus on economic growth, resilience, and global competitiveness. At a time of continued geopolitical uncertainties, the budget reflects India’s ambition to sustain momentum as one of the world’s fastest-growing major economies and a critical partner for the United States in the Indo-Pacific," Atul Keshap said.

“We welcome the government’s emphasis on sustained growth of around 7%, fiscal prudence, and a strong thrust on public investment. These macro priorities, alongside pillars such as strengthening the foundations of growth and trust-based governance, are central to strengthening India’s long-term growth fundamentals and deepening bilateral commercial ties between the world’s two largest democracies,” he added.

USIBC has urged the government to fast-track reforms in areas such as taxation, ease of doing business, trade facilitation, and regulatory certainty to strengthen investor confidence and unlock higher levels of foreign investment.

The council also welcomed the Government of India’s emphasis on frontier technologies through initiatives like India Semiconductor Mission 2.0, highlighting its focus on equipment and materials, end-to-end design, domestic intellectual property, resilient supply chains, and industry-driven research and skill development. Additionally, USIBC praised initiatives including the AI Mission, National Research Mission, Innovation Fund, and the National Quantum Mission, noting that they reflect India’s growing ambitions in advanced and next-generation technologies.

"USIBC also commends the government’s policies to provide a stronger boost to its strategic sectors by providing tax holidays until 2047 for foreign cloud service providers having data centres in India and various initiatives in the Tourism Sector, including the establishment of Five Hubs for Medical Value Tourism. USIBC encourages further clarity on implementation and private-sector participation to maximise impact and investor interest."

"In Energy and Climate, USIBC notes the Rs 20,000 crore Carbon Capture Utilisation and Storage (CCUS) scheme, the Basic Customs Duty (BCD) exemptions for Lithium-Ion Cell manufacturing and critical mineral processing and the Scheme for Rare Earth Permanent Magnets. We also welcome the extension of BCD exemptions for Nuclear Power Projects until 2035. In Healthcare and Services, we note the efforts to have a more robust care economy with a stronger focus on addressing concerns relating to mental healthcare, Divyangjans and cancer."

"The budget’s focus on Manufacturing in Strategic and Frontier Sectors, including Electronics Components and Container Manufacturing, is an important signal of India’s intent to integrate more deeply into global value chains. Initiatives related to dedicated Chemical Parks, Biopharma SHAKTI, and the scheme to revive 200 legacy industrial clusters have the potential to drive competitiveness, provided they are accompanied by policy certainty, streamlined approvals, and openness to global partnerships," he added.

Ambassador (ret.) stated that USIBC is committed to working in close ties with the Government of India and stakeholders across the US–India corridor to figure out significant policy priorities and advance the level of reforms that bolster commercial ties, enhance competitiveness, and lead to the shared economic prosperity.

What is the US-India Business Council?

The US-India Business Council (USIBC) was established in 1975 at the behest of the US and Indian Governments. It has remained a trusted platform for strengthening the US-India strategic and commercial partnership for more than 50 years. USIBC represents over 200 leading Indian and American companies committed to advancing the U.S.-India commercial and strategic partnership.

As the premier voice of industry in the U.S.–India commercial partnership, USIBC works closely with governments and stakeholders to advance policy priorities, strengthen bilateral trade and investment, and support sustainable economic growth.