CII proposes 6-pronged investment roadmap for India’s next decade of growth

New Delhi: Ahead of the Union Budget 2026-27, the Confederation of Indian Industry (CII) on Sunday proposed a comprehensive, six-pronged investment strategy anchored in fiscal prudence, capital efficiency and investor confidence.

Sustained investment growth, spanning public, private, and foreign investments, will be central to maintaining India’s momentum as one of the world’s fastest-growing major economies, according to the apex industry chamber.

“The forthcoming Union Budget 2026–27 has to serve the dual role of stabiliser and growth enabler, and promoting investments will be one of the most critical components in this regard,” said Chandrajit Banerjee, Director General, CII.

The recommendations emphasise strengthening public capital expenditure as the backbone of infrastructure-led growth, while simultaneously unlocking private and foreign investment through targeted incentives, institutional reforms, and enhanced global engagement.

First, bolstering public investment remains essential. Public capital expenditure has been the key driver of India’s post-pandemic recovery, catalysing infrastructure expansion and crowding in private capital.

To sustain this momentum, CII recommends increasing central capital expenditure by 12 per cent and capex support to states by 10 per cent in FY27, with continued emphasis on high-multiplier sectors such as transport, energy, logistics, and the green transition.

To strengthen project selection and execution, the chamber also proposes institutionalising a Capital Expenditure Efficiency Framework (CEEF) to prioritise high-impact projects, track physical and financial progress, and evaluate outcomes based on productivity and regional spillovers.

CII has further called for launching a Rs 150 lakh crore National Infrastructure Pipeline (NIP) 2.0 for 2026–32, with a clear list of shovel-ready projects including PPP projects, to provide multi-year certainty to investors, developers, and states.

Such a framework would strengthen credibility by aligning fiscal policy with medium-term debt sustainability, according to the CII.

Second, facilitating private investment will be the next major priority. While public investment lays the foundation, private and foreign capital will be the true accelerators of India’s transformation.

“The Government has provided a big demand push via income tax relief in last year’s Union Budget and recently via GST 2.0. Investments, especially private sector investment, will be the next big driver for economic growth that needs to be focused on in the next fiscal to continue the growth momentum,” added Banerjee.

Third, to attract long-term capital for priority sectors, CII suggests establishing an NRI Investment Promotion Fund. This can be a government–private holding company, with up to 49 per cent government stake, that channels NRI, FPI, and institutional investments into sectors such as infrastructure and AI.

The Fund can raise capital through long-term convertible bonds benchmarked to FCNR rates, offering secure returns with equity upside, and including special India Global Diaspora Bonds.

Fourth, CII proposes strengthening the National Investment and Infrastructure Fund (NIIF) by forming a Sovereign Investment Strategy Council (SIFC) to align investments with national priorities, ensure governance excellence, and benchmark performance against leading global sovereign funds.

Fifth, simplifying ECB processes and providing higher borrowing limits, longer tenures, and partial risk cover for infrastructure and manufacturing projects would improve access to global capital while maintaining external sustainability.

A single-window clearance mechanism for large FDI proposals, backed by dedicated facilitation cells at the Centre and in the states, with deemed approval within sixty to ninety days, would deliver predictability, reduce administrative delays, and accelerate big-ticket investments, said the CII.

Sixth, to deepen global investor engagement, CII recommends establishing an India Global Economic Forum as a government-led platform that brings together MNCs, sovereign wealth funds, pension funds, private equity, and other institutional investors for structured dialogue with senior government leadership on emerging investment opportunities across sectors.

IANS