ASSOCHAM Seeks Growth-Oriented Reforms in Budget 2026–27

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has submitted its Pre-Budget Memorandum for the Union Budget 2026–27, recommending a focused set of statutory and economic measures to sustain India’s growth momentum, improve capital efficiency and strengthen investor confidence amid a challenging global environment. The Chamber noted that while India remains the fastest-growing major economy, policy emphasis must now shift toward improving the quality of investment, lowering transaction costs and ensuring predictability for businesses.

ASSOCHAM has called for prioritising high-quality public capital expenditure in logistics, transport, transmission infrastructure, renewable energy and industrial corridors, alongside stronger asset monetisation through a unified approval framework and transparent valuation norms. It emphasised that faster clearances under PM Gati Shakti and a permanent dispute-resolution mechanism for infrastructure and PPP projects are critical to unlocking stalled assets and crowding in long-term private investment.

On the tax front, ASSOCHAM has recommended reintroducing a concessional corporate tax regime similar to Section 115BAB of the Income-tax Act for new manufacturing and service companies, with the benefit also extended to fresh investments and capacity expansion by existing firms. The Chamber noted that such a measure would support domestic value addition, export competitiveness and India’s positioning as a global manufacturing hub under evolving supply-chain realignments

To ease corporate restructuring, ASSOCHAM has proposed targeted amendments to the Income-tax law to broaden tax neutrality for business reorganisations, including fast-track demergers, while relying on existing anti-abuse safeguards instead of blanket exclusions.

The Memorandum has highlighted the need for greater fiscal predictability through timely GST and RoDTEP refunds, strict enforcement of MSME payment timelines and assured payment schedules by government entities. ASSOCHAM also recommended deepening corporate bond markets through expanded repo access and improved settlement mechanisms, alongside diversified funding options for NBFCs to support stable credit flow, particularly to MSMEs

In trade facilitation, ASSOCHAM has proposed a time-bound customs amnesty to resolve legacy disputes, especially relating to CVD and SAD, and full operationalisation of Section 11(3) of the Customs Act, 1962, so that all import and export conditions are notified through a single, transparent customs framework, reducing compliance uncertainty

Commenting on the submission, Mr. Manish Singhal, Secretary General, ASSOCHAM stated, “The Budget must now focus on precision reforms such as improving capital efficiency, ensuring statutory clarity and reducing friction in taxation, trade and finance. These measures can unlock private investment and support sustained, job-creating growth without compromising fiscal discipline.”

ASSOCHAM concluded that adoption of these targeted economic and statutory recommendations in the Union Budget 2026–27 would strengthen investor confidence, enhance productivity and support India’s long-term development goals aligned with the vision of Viksit Bharat @ 2047.