India’s economy is growing strongly, but private investment has not revived at scale. As the Union Budget 2026–27 approaches, the government has an opportunity to address structural bottlenecks. Rationalising input taxes, easing compliance, and correcting supply-side distortions can help restore private sector confidence.

BulletsIn

•  Budget 2026 seen as key moment for private investment revival
•  Reforms boosted growth, but private capex remains uneven
•  GDP growing at 7–8%, yet India Inc hesitant to invest
•  Government capex driving growth instead of private sector
•  Import duties raised to support steel sector investment
•  Higher steel costs hurt downstream industries and MSMEs
•  Rising input costs squeeze margins and deter new investments
•  Import curbs reduce competitiveness in export markets
•  Supply-side distortions slowing broad-based capex recovery