Leading US-India business organisations have welcomed India’s Union Budget 2026–27, stating it reinforces strong economic growth, fiscal responsibility, and India’s position as a key US economic partner amid global uncertainty. The US-India Business Council (USIBC) and the US-India Strategic Partnership Forum (USISPF) highlighted that the budget strengthens bilateral commercial and strategic ties while underlining India’s commitment to resilience and global competitiveness.
The councils noted that continued growth, disciplined fiscal management, and public investment send a strong signal to international investors, positioning India as one of the 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 and deepen strategic and economic engagement with the US in the Indo-Pacific region.
USIBC particularly praised the government’s focus on sustaining around 7% growth, fiscal prudence, and public investment. The council encouraged accelerated reforms in taxation, trade facilitation, ease of doing business, and regulatory predictability to further boost investor confidence. The budget’s emphasis on frontier technologies, including India Semiconductor Mission 2.0, AI Mission, National Research Mission, Innovation Fund, and National Quantum Mission, was highlighted as a major step toward next-generation industries.
In the energy and climate sector, USIBC welcomed initiatives such as the $250 million Carbon Capture Utilization and Storage programme and customs exemptions for lithium-ion cell manufacturing, critical minerals, and rare earth magnets. Exemptions for nuclear power projects have also been extended to 2035.
USISPF noted that the budget supports sustained growth, job creation, and sectoral competitiveness through technology-driven reforms. Comprehensive customs reforms, AI-powered inspections, and the extension of the Single Window mechanism aim to improve logistics efficiency and trade facilitation. Targeted customs duty rationalisation supports manufacturing and energy transition goals, while reforms in direct taxation and transfer pricing simplify compliance and reduce litigation risks.
The Forum highlighted a landmark policy: a long-term tax holiday until 2047 for cloud services provided via local data centres. This incentive, USISPF said, has the potential to attract significant global investment and generate long-term employment opportunities in India.
