Finance
Leading US-India business groups applauded India’s Union Budget 2026-27, stating that it strengthens growth, fiscal discipline, and India’s role as a crucial economic partner for the US during a period of global instability.
The US-India Business Council (USIBC) and the US-India Strategic Partnership Forum (USISPF) stated the budget demonstrated India’s commitment to economic growth, resilience, and global competitiveness, while also laying the groundwork for stronger bilateral commercial and strategic partnerships.
The emphasis on long-term growth, fiscal responsibility, public investment, and reform sends a strong signal to global investors during a period of geopolitical and economic instability, the two said in separate comments. This strengthens India’s position as one of the world’s fastest-growing major economies and a crucial partner for the United States, both said.
USIBC president Atul Keshap stated that the budget highlighted “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.”
The USIBC welcomed the government’s focus on sustainable growth of approximately 7%, fiscal discipline, and public investment, stating that these initiatives were critical to enhancing India’s long-term growth foundations and deepening bilateral commercial connections.
Simultaneously, the Council urged the government to speed tax changes, ease of doing business, trade facilitation, and regulatory predictability in order to increase investor confidence and attract more foreign investment.
The USIBC also applauded the emphasis on frontier technologies through initiatives such as the India Semiconductor Mission 2.0, the AI Mission, the National Research Mission, the Innovation Fund, and the National Quantum Mission, stating that they highlight India’s ambition in next-generation technology.
On energy and climate, the USIBC emphasized the Rs 20,000 crore Carbon Capture Utilization and Storage project, as well as Basic Customs Duty exemptions for lithium-ion cell production, essential mineral processing, and rare earth permanent magnets.
The Council also approved an extension of customs tax exemptions for nuclear power projects until 2035. In healthcare and services, USIBC recognized initiatives to strengthen the care economy, with a greater emphasis on mental health, Divyangjans, and cancer.
USISPF praised the union budget for promoting long-term growth, job creation, and improved ease of doing business, stating that it prioritizes technology-driven reforms and sectoral competitiveness. Trade facilitation is well aligned with its aims, enhancing India’s attractiveness as a global investment destination.
The Forum applauded substantial customs reforms aimed at modernizing trade processes and increasing logistics efficiency.
It stated that the implementation of end-to-end digital and technology-enabled solutions, such as AI-powered non-intrusive inspection, phased scanning of all containers at key ports, and the extension of the Single Window method to express cargo, will shorten dwell times and improve cargo movement.
On tariffs, the USISPF stated that targeted customs duty reductions aided India’s manufacturing and energy transition objectives.
The USISPF stated that the basic Customs Duty has been reduced to zero on critical minerals, solar manufacturing inputs, capital goods for lithium-ion Battery Energy Storage Systems, nuclear power equipment, select electronics and aircraft components, MRO raw materials, and certain critical drugs and medicines.
It applauded direct taxation and transfer pricing measures, such as transfer pricing simplification and safe-harbor provisions to reduce litigation for the IT services sector and Global Capability Centres.
“The Budget provides a long-term tax holiday until 2047 for cloud services provided through local data centres,” USISPF said, calling it a landmark policy with the potential to catalyse global investment and long-term job creation.
