The Confederation of Indian Industry (CII) today unveiled its pre-budget manifesto, placing domestic demand at the epicenter of recommendations for the 2026-27 Union Budget. With India’s economy firing on multiple cylinders, CII argues that nurturing internal consumption is key to achieving self-reliant growth in a fragmented world order.
Breaking down the strategy, CII identifies three pillars: enhancing affordability, creating employment, and investing in human capital. Specific calls include a universal basic income pilot for low-income households, accelerated MGNREGA wage hikes, and tax rebates for first-time homebuyers. These measures, CII claims, would inject vitality into stagnant demand segments.
Data backs the urgency: While urban consumption rebounds, rural markets lag, contributing to uneven recovery. CII’s analysis shows a 12% rise in e-commerce sales but only 5% growth in traditional retail, signaling the need for balanced interventions.
On the reform front, the industry lobby urges streamlining labor laws to boost manufacturing jobs, alongside easing credit for MSMEs—the backbone of domestic supply chains. ‘Sustained reforms will convert one-time boosts into structural demand,’ the report asserts.
Global context adds weight: With China’s export surge and US protectionism rising, India’s best bet lies inward. CII projects that a demand-focused budget could elevate capex to 12% of GDP, fostering a multiplier effect across sectors.
Reactions have been positive, with trade bodies aligning on the need for pro-consumption policies. As the budget session nears, CII’s clarion call resonates: In an era of disruptions, strong domestic demand is not optional—it’s imperative for India’s tryst with a $5 trillion economy.