Ahead of the Union Budget for 2026-27, leading economists emphasised that the government should prioritise reviving private investment and simplifying customs procedures, signalling that structural reforms must drive India’s next growth phase, sources said.
At a pre-Budget consultation chaired by Finance Minister Nirmala Sitharaman in New Delhi on November 10, around 20 leading economists and policy experts from academia, global banks and think tanks shared their recommendations.
“The economists said that reviving the private investment cycle should be the central policy priority. They said that the Budget should focus on creating predictable conditions for businesses to invest,” a source told Moneycontrol.
Simplified customs regime
Participants also emphasised the need to simplify customs procedures to improve trade efficiency. Digitising documentation and reducing clearance time could significantly lower transaction costs, they said.
Customs procedure simplification will have an impact on competitiveness. It reduces friction for exporters and manufacturers while improving the overall trade environment, they added.
Customs simplification refers to reforms aimed at reducing documentation, inspections and clearance times for goods entering or leaving a country.
Non-financial reforms
Economists also pressed for a strong push on non-financial reforms – such as simplifying regulatory frameworks, expediting clearances, and improving governance and judicial efficiency – to sustain high growth over the medium term.
Reforms beyond taxation are essential to keep India’s growth engine steady. Policy predictability can drive productivity and attract long-term capital, they said.
Fiscal discipline
While endorsing continued fiscal consolidation, economists at the meeting said the Budget must maintain fiscal deficit targets while ensuring capital expenditure continues to support private investment.
Economists broadly agreed that the emphasis should move towards enabling private investment, simplifying trade procedures, and sustaining macroeconomic stability in the 2026-27 Budget.
Those present at the meeting included Dharmakirti Joshi, Chief Economist at Crisil; Sajjid Chinoy, J P Morgan’s Chief Asia Economist; economist Indira Rajaraman; Neelkanth Mishra, Chief Economist at Axis Bank; Ridham Desai, Managing Director and Head of India Research at Morgan Stanley India; Sonal Varma, Chief Economist (India and Asia) at Nomura Holdings; Tanvee Gupta Jain, Chief India Economist at UBS Securities India; Pranjul Bhandari, Chief India Economist & ASEAN Economist at HSBC; Vidhu Shekhar, Professor of Finance and Accounting at S.P. Jain Institute of Management & Research; Pradeep Apte, Distinguished Professor at the Gokhale Institute of Politics and Economics; and Abhiroop Mukhopadhyay, Professor at the Indian Statistical Institute, among others.
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