WASHINGTON, D.C. — Leading U.S.-India business groups welcomed India’s Union Budget 2026–27, saying it reinforces economic growth, fiscal discipline, and India’s role as a key economic partner for the United States amid global uncertainty.
In separate statements, the U.S.-India Business Council and the U.S.-India Strategic Partnership Forum said the budget underscores India’s commitment to sustained growth, resilience, and global competitiveness, while strengthening the foundation for deeper bilateral commercial and strategic ties.
The emphasis on sustained growth, fiscal prudence, public investment, and reform sends a strong signal to global investors at a time of geopolitical and economic uncertainty, the groups said, reinforcing India’s position as one of the world’s fastest-growing major economies and a critical partner for the United States.
USIBC President Atul Keshap said the budget reflects “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.”
Welcoming the government’s focus on growth of around 7 percent, fiscal discipline, and public investment, USIBC said these priorities are central to strengthening India’s long-term growth fundamentals and deepening bilateral commercial ties. At the same time, the council encouraged faster reforms in taxation, ease of doing business, trade facilitation, and regulatory predictability to further boost investor confidence and unlock higher levels of foreign investment.
USIBC also welcomed the budget’s focus 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, saying they underscore India’s ambitions in next-generation technologies.
On energy and climate, the council highlighted the Rs 20,000 crore Carbon Capture Utilization and Storage scheme, along with Basic Customs Duty exemptions for lithium-ion cell manufacturing, critical mineral processing, and rare earth permanent magnets. It also welcomed the extension of customs duty exemptions for nuclear power projects until 2035.
In healthcare and services, USIBC said it noted efforts to build a stronger care economy, with increased focus on mental healthcare, Divyangjans, and cancer.
Applauding the budget for supporting sustained growth, job creation, and improved ease of doing business, USISPF said it emphasizes technology-driven reforms and sectoral competitiveness, aligning closely with the forum’s priorities and strengthening India’s attractiveness as a global investment destination.
The forum particularly welcomed comprehensive customs reforms aimed at modernizing trade processes and improving logistics efficiency. It said the rollout of end-to-end digital and technology-enabled solutions, including AI-powered non-intrusive inspection, phased scanning of all containers at major ports, and the extension of the Single Window mechanism to express cargo, would reduce dwell times and streamline cargo movement.
On tariffs, USISPF said targeted customs duty rationalization supports India’s manufacturing and energy transition goals. It noted that the Basic Customs Duty has been reduced to nil 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.
The forum also welcomed reforms in direct taxation and transfer pricing, including the simplification of transfer pricing and safe-harbour rules 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 catalyze global investment and long-term job creation. (Source: IANS)
