capex increase – Bharat Pulse News

India Inc has put forward its expectations for the upcoming FY26 Union Budget, advocating for an increase in capital expenditure (capex) and reductions in tax rates. The corporate sector believes these measures are crucial to sustaining economic growth and boosting private investments. Focus on Capital Expenditure Corporate leaders have emphasized the need for the government to maintain its focus on capital-intensive projects, which have been pivotal in driving infrastructure development and employment. Higher capex allocations, particularly in sectors such as transportation, energy, and digital infrastructure, are expected to provide a multiplier effect on the economy, creating jobs and attracting private investment. Demand for Tax Reforms India Inc has also called for a reduction in corporate and personal income tax rates to enhance disposable incomes and improve business competitiveness. Lower tax rates, industry experts argue, would incentivize businesses to expand operations and boost consumption, contributing to a more robust economic environment. The industry further seeks clarity on tax reforms, including the rationalization of Goods and Services Tax (GST) rates and simplification of compliance procedures. Such reforms, according to corporate leaders, are essential for improving the ease of doing business in India. Encouraging Private Sector Participation To complement government spending, India Inc has urged the government to create a conducive environment for private sector participation in critical projects. This includes policy measures to address bottlenecks in land acquisition, access to credit, and regulatory approvals. Balanced Budget Approach While advocating for higher spending, business leaders have also stressed the importance of fiscal prudence. A balanced approach that ensures economic growth without significantly widening the fiscal deficit is seen as the ideal strategy. The FY26 budget, scheduled for presentation in February, is being closely watched by corporate stakeholders. With global uncertainties and domestic challenges, the budget is expected to play a pivotal role in steering India’s economic trajectory in the coming years.

India Inc Urges Higher Capex, Tax Relief in FY26 Budget

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