Echoing the resilience of India’s consumer base, the Confederation of Indian Industry (CII) has laid out a compelling case for centering the Union Budget 2026-27 around bolstering domestic demand. In its detailed policy paper, CII warns that without proactive steps, growth could plateau amid external volatilities.
At the heart of the agenda is empowering the common citizen. CII recommends slashing customs duties on essentials, expanding Ayushman Bharat coverage, and launching a national apprenticeship program to link skilling with jobs. ‘When people have money in their pockets and skills in their hands, demand follows naturally,’ CII President articulated.
Sectoral spotlights include auto, where EV adoption incentives could drive 20% volume growth; realty, with PMAY extensions; and retail, via e-commerce tax holidays. CII also pushes for agricultural reforms like crop insurance enhancements to stabilize rural spending.
Quantitative projections are optimistic: Reforms could add 1.5 percentage points to GDP growth, pushing it beyond 8%. This aligns with RBI’s latest bulletin showing consumer confidence at a two-year high.
Challenges acknowledged include fiscal deficit management, for which CII suggests disinvestment acceleration and PPP models for infra. Globally, with IMF revising India’s forecast upward, domestic focus complements export ambitions.
The report culminates in a stark message for policymakers: Prioritize people-powered growth. As industry leaders convene, CII’s blueprint charts a course for inclusive, demand-led prosperity, ensuring India’s economic ascent endures beyond headlines.