Budget
Ficci pushes defence, exports and tax reform ahead of budget 2026
NATIONAL: Ficci has fired the opening salvo ahead of the Union Budget 2026–27, urging the government to double down on defence, exports and domestic capital as the global economy drifts into choppier waters.
The industry body’s pitch comes against a fragile global backdrop. The IMF now pegs world growth at 3.2 per cent in 2025, easing to 3.1 per cent in 2026, with protectionism, tariff volatility and geopolitical risk weighing on trade and investment. India, by contrast, remains the outlier: real GDP grew 6.5 per cent in FY25 and is tipped by the RBI to edge up to 6.8 per cent this year, keeping alive the near-8 per cent path needed for a ‘Viksit Bharat’ by 2047.
Ficci wants the budget to lean into that advantage. It has called for defence spending to rise by about 10 per cent, with capital outlay lifted to 30 per cent of the ministry of defence budget to fast-track drones, air defence, electronic warfare and border infrastructure. The lobby also wants an extra Rs 10,000 crore for the defence research and development organisation to bankroll deep-tech, from AI-enabled systems to autonomous platforms, and a new defence export promotion council to help hit the Rs 50,000-crore export target by 2028–29.
On manufacturing, Ficci is pushing for a mega electronics industrial park to replicate the dense supply chains of Shenzhen and Vietnam, and for cleaner customs codes and tariffs for printed circuit board assemblies to curb imports and lift value addition at home.
Critical minerals are another flashpoint. With clean energy, EVs and semiconductors driving demand for lithium, cobalt and rare earths, Ficci wants a dedicated tailings-recovery programme under the national critical minerals mission, backed by a geo-referenced atlas of mine waste and cheaper finance to turn old dumps into new supply.
Exports, rattled by US tariffs and carbon and deforestation rules, need more oxygen. Ficci says the Rs 18,233-crore outlay for the RoDTEP rebate scheme is too thin and should be lifted and locked in for at least three years to keep Indian goods competitive.
The group is also asking for a smarter tax play for India’s 1,600-plus global capability centres, whose rising R&D and digital roles are clashing with an outdated transfer-pricing regime. Clearer safe harbours and faster advance pricing agreements would, it argues, keep multinationals expanding in India.
To fund all this, Ficci wants a deeper bond market. It is lobbying to widen the pool of firms forced to tap debt markets, relax insurer and pension-fund limits so patient capital can flow into infrastructure, and restore favourable tax treatment for debt mutual funds, whose share of industry assets has slid below 25 per cent since 2023.
Add in a big push on drones, farm productivity and a national youth service scheme to plug last-mile delivery gaps, and the message to North Block is blunt: as global growth cools, India must spend, build and reform its way to resilience.
Ficci has also trained its sights on the tax system, arguing that clogged appeals, rigid recovery rules and patchy digital plumbing are choking investment just when the economy needs momentum.
At the heart of the complaint is a towering backlog at the commissioner of income tax (appeals), with 5.4 lakh cases involving Rs 18.16 lakh crore stuck as of April 1, 2025. What was meant to be a slick, faceless appeals system has instead produced serial notices, missing hearings and remand reports that go unanswered, leaving taxpayers in limbo and refunds frozen for years.
Ficci is pressing for a two-track disposal model, fast-tracking small and routine matters while forcing complex, high-value disputes through a stricter, time-bound process. It also wants 40 per cent of vacant appellate posts filled immediately and automatic stays — with refunds — when appeals drag beyond two years without taxpayer fault.
Cash-flow pain is being compounded by how tax demands are enforced. Although rules allow a stay once 20 per cent of disputed tax is paid, refunds are routinely adjusted by the central processing centre against stayed demands because orders are not digitally synced. Industry is asking for real-time integration between assessing officers and CPC, and for bank guarantees or insurance bonds to be accepted instead of cash deposits, following models used by tax authorities in Australia and other developed markets.
Corporate restructuring has become another fault line. Under the new income-tax code, fast-track demergers — introduced to unclog the NCLT and speed up intra-group restructurings — have been denied tax-neutral status. Ficci warns this makes the fast-track route pointless, and is pushing for section 233 of the Companies Act to be brought back into the tax-neutral framework so small and internal demergers can proceed without punitive tax bills.
On compliance, the lobby is calling time on India’s labyrinthine TDS regime, which has 37 different rates ranging from 0.1 per cent to 30 per cent. It wants the system collapsed into three slabs — salaries, sin-style winnings and two standard rates — and B2B payments under GST taken out of TDS altogether, arguing the current micro-deductions add paperwork but raise little revenue.
Multinationals, meanwhile, are demanding clarity on what constitutes a “business connection”. Foreign manufacturers remain wary of placing machinery or holding components in India because it can trigger local tax liability. Ficci wants explicit exemptions for just-in-time inventories and free-of-cost equipment used by Indian contract manufacturers, a promise already floated by the finance minister but not yet delivered.
Transfer-pricing rules have also become a flashpoint. The new tax code has quietly widened the definition of “associated enterprises”, potentially dragging in unrelated lenders and contract manufacturers. Industry is asking the government to revert to the older, narrower definition to prevent a fresh wave of litigation.
Even buybacks are under fire. Since last year’s changes, the entire payout from a buyback is treated as dividend, even when it comes from share premium or fresh capital rather than profits. That, Ficci argues, leads to the absurd result of shareholders being taxed on what is effectively a capital loss. It wants buybacks taxed only on the profit element, in line with practice in the UK, Australia and the Netherlands.
MUMBAI: Anuj Singhal, managing editor at CNBC- AWAAZ and CNBC BAJAR, operates at the sharp end of India’s business news ecosystem. With over two decades in business journalism, he has earned credibility for decoding policy, markets and macro trends for millions of Hindi-speaking investors. Equal parts newsroom leader and market analyst, he shapes editorial direction while anchoring flagship shows that break down the economy, politics and corporate India in real time.
Known for cutting through jargon and hype, Singhal blends data, discipline and clarity — a mix that has made him one of the most trusted voices in Hindi business news.
In this interaction, he discusses the Union Budget, trade deals, newsroom strategy and what truly moves markets and ratings.
• What was the single most market-moving announcement in this Budget, and why?
The most market-moving element was the clear commitment to fiscal consolidation without compromising capex. The glide path on fiscal deficit reassured bond markets and foreign investors, while sustained public investment kept growth expectations intact. That balance removed a big overhang for both equities and debt.
• Do you see this Budget as growth-oriented, fiscally cautious, or politically calibrated?
This Budget is growth-led but fiscally disciplined. It avoids overt populism, stays within macro guardrails, and prioritises medium-term competitiveness over short-term optics. Politically, it is restrained; economically, it is deliberate. The message is clear: stability over spectacle.
• How is CNBC-AWAAZ programming different, especially in decoding trade deal impact?
CNBC-AWAAZ goes beyond headline reaction. We translate policy into portfolio impact — sector by sector, stock by stock.
On trade agreements, our focus is on:
-Earnings visibility
-Export competitiveness
-Currency implications
-Margin sustainability
We don’t treat trade deals as political milestones. We decode them as profit-and-loss events for corporate India and map them to FY earnings trajectories.
• Which sectors look like clear winners and laggards over the next 12–18 months?
The next 12–18 months favour sectors aligned with structural spending and supply-side strengthening.
– Clear beneficiaries:
Capital goods and infrastructure
Manufacturing linked to export chains and PLI ecosystems
Power, defence, and logistics
– Relative laggards:
Consumption segments dependent on immediate demand revival
Businesses facing margin pressure from global volatility or pricing power erosion
This is not a momentum-driven market environment. It is execution-driven. Balance-sheet strength and order visibility will matter more than narrative.
• One headline to sum up this Budget 2026 for India Inc?
“Steady Hands, Long-Term Vision: A Budget That Rewards Discipline Over Drama”.
• What editorial filters do you apply before calling something ‘market-positive’ or ‘negative’?
We apply three structured filters:
– First: Earnings translation — does this materially change earnings visibility or cash flow outlook?
– Second: Time horizon — is the impact immediate, cyclical, or structural?
– Third: Valuation context — good news priced in or not.
If a policy doesn’t move earnings or risk perception, we don’t oversell it.
• How has business news consumption changed around big policy events?**
There has been a clear behavioural shift. They’re less interested in what was said, more in what it means for their money. There’s also a clear shift toward second-screen consumption, with digital platforms complementing live TV. The audience seeks sharper accountability. Viewers no longer accept broad optimism or pessimism — they want frameworks, numbers, and sector mapping.
• CNBC-AWAAZ decisively outperformed on Budget Day. What editorial and distribution choices mattered most?
Three deliberate strategic choices:
– Preparation depth:
We build scenarios months in advance — deficit ranges, sectoral incentives, tax calibrations — so we’re ready with analysis the moment numbers are announced.
– Language of impact:
We translate macro policy into investor-friendly Hindi without diluting complexity. That bridges accessibility and sophistication.
– Integrated distribution:
Television, YouTube, and digital platforms operate as one editorial grid, not parallel silos. This ensures continuity of narrative.We stayed analytical while others stayed reactive.
• How different is your YouTube audience from your TV audience?
The behavioural differences are subtle but important. TV audiences prioritise authority, structured debate, and context. YouTube audiences want speed, clarity, and actionable insights — often sharper, sometimes more opinionated. However, both share one expectation: accuracy. The format evolves; the trust benchmark does not.
• How do you retain viewers after the budget speech ends?
By shifting from announcements to implications.Retention comes from shifting the narrative from announcement to implication. We break down sectoral breakouts, stock-level impact, and what to do next. The speech is just the trigger; analysis is the destination.
• Is Budget Day your biggest traffic day?
It is one of the biggest — but more importantly, it is among the deepest in engagement. Viewers spend longer durations, revisit segments, and seek follow-up programming. That indicates behavioural trust, not just traffic.
• What’s the first thing you personally track on Budget Day — the speech or the markets?
The markets. They’re the fastest truth-teller. The speech explains intent; markets reveal interpretation.
• Your personal Budget-day ritual?
Early morning prep, minimal distractions, and once the speech begins, complete immersion. For me, Budget Day is less about reaction and more about reading between the lines.
• What drove your Budget-day ratings dominance, and how are Budget and trade deals shaping markets now?
Our dominance came from credibility, consistency, and clarity.
As for markets, both the Budget and recent trade deals are reinforcing a narrative of policy stability and global integration, which supports valuations even amid global volatility.
For Singhal, the market is the final judge. Policies can promise and speeches can persuade, but prices reveal what investors truly believe. As India’s investor class grows more informed and more demanding, business journalism is shifting from commentary to calibration. The premium is on clarity, context and credibility. In a landscape flooded with noise, the real edge lies in interpretation. In the end, the markets listen to numbers, not narratives , and Singhal’s craft is helping viewers tell the difference.
