Whalesbook
Industry Demands Execution-Led 'Make in India' Push
Industry bodies are urging the government to prioritize execution over policy formulation for the 'Make in India' initiative in the upcoming Union Budget 2026-27. The Associated Chambers of Commerce & Industry of India (ASSOCHAM) survey highlights that while government schemes are moving in the right direction, their on-ground impact remains uneven, with a significant portion of respondents reporting limited or moderate benefits.
Key Hurdles to Manufacturing Scale-Up
Domestic manufacturers face substantial impediments that need addressing in the budget. High compliance burdens, coupled with escalating logistics and energy costs, are cited as major challenges. Furthermore, limited access to long-term capital hinders production scaling. Uncertainty in global demand and gaps in technology adoption also weigh on growth prospects, alongside quality standards and certification requirements.
Budget Priorities for Growth
ASSOCHAM's pre-Budget survey indicates that strengthening Micro, Small, and Medium Enterprises (MSMEs) and simplifying tax and compliance systems are top priorities after boosting domestic manufacturing. Industry leaders are calling for cheaper long-term capital, improved credit availability, and targeted tax incentives for technology upgrades and automation. Expanding Production Linked Incentive (PLI) schemes and streamlining customs duties on raw materials are also on the wish list.
Cautious Optimism for Business Outlook
Despite the challenges, there is cautious optimism regarding the business outlook. Approximately 55% of survey respondents anticipate improved conditions over the next 12 months, while 32% remain neutral, and 13% are pessimistic. This sentiment underscores the critical need for execution-oriented reforms in Budget 2026-27 to unlock private investment and drive manufacturing growth.