- USIBC and USISPF praise India's Budget 2026-27 as a global investment booster
- Budget's customs reforms and tariff cuts enhance logistics and export competitiveness, bodies said
- Reforms in taxation and banking support India's growth and deepen US-India ties, they added
Two of the most influential US-India industry bodies – the US-India Business Council (USIBC) and the US-India Strategic Partnership Forum (USISPF)-- have strongly welcomed the Union Budget 2026-27, calling it a forward-looking fiscal blueprint that strengthens India's position as a global investment hub while deepening economic ties with the United States.
Reacting to the budget presented in Parliament by Finance and Corporate Affairs Minister Nirmala Sitharaman, both groups said the government's emphasis on technology-led growth, customs and tax reforms, strategic manufacturing, and regulatory modernisation sends a positive signal to global investors at a time of geopolitical and economic uncertainty.
Key Highlights
Both bodies highlighted India's aggressive push into frontier technologies as a major attraction for US industry.
USIBC President Ambassador (ret.) Atul Keshap welcomed initiatives such as the India Semiconductor Mission 2.0, the AI Mission, the National Research Mission, the Innovation Fund, and the National Quantum Mission, saying these underline India's ambition to become a global hub for next-generation technologies, resilient supply chains, and indigenous intellectual property.
A landmark announcement that drew particular praise from both organisations was the long-term tax holiday until 2047 for foreign cloud service providers operating local data centres in India.
USISPF President and CEO Mukesh Aghi described this as a policy that could do for India's cloud and data centre ecosystem what IT incentives did for services exports in the early 2000s – catalyse large-scale investment, exports, jobs and capability building.
Game Changers
USISPF particularly emphasised the budget's sweeping customs modernisation programme, including AI-powered non-intrusive inspections, phased scanning of containers at major ports, and expansion of the Single Window mechanism to express cargo.
The forum said these steps would reduce dwell times, improve transparency, and significantly streamline logistics - a long-standing concern of global manufacturers and exporters operating in India.
Tariff rationalisation also drew praise. The reduction of Basic Customs Duty to nil on critical minerals, inputs for solar manufacturing, capital goods for battery energy storage systems, nuclear power equipment, select electronics and aircraft components, and certain medicines was described as a move that will reduce input costs for sunrise sectors while strengthening export competitiveness.
Reforms
USISPF welcomed major direct tax and transfer pricing reforms aimed at reducing litigation and improving predictability for IT services firms and Global Capability Centres (GCCs). These include broader safe harbour rules, a unified category for IT services with a defined margin, automated approvals, and faster Advance Pricing Agreements.
In addition, the announcement of a high-level committee on banking sector reforms was seen as critical for improving capital intermediation and supporting India's next phase of growth while safeguarding financial stability and inclusion.
USIBC echoed the need for continued reforms in taxation, ease of doing business, regulatory predictability, and trade facilitation to further boost investor confidence and unlock higher levels of foreign direct investment.
What's In Focus
USIBC pointed to several sectoral initiatives as important signals of India's intent to integrate more deeply into global value chains. These include incentives for electronics components and container manufacturing, dedicated chemical parks, the Biopharma SHAKTI initiative, and the revival of 200 legacy industrial clusters.
In energy and climate, the ₹20,000 crore Carbon Capture Utilisation and Storage scheme, customs duty exemptions for lithium-ion cell manufacturing and critical minerals processing, and support for rare earth permanent magnets were noted as important steps toward energy transition and supply chain resilience. The extension of customs duty exemptions for nuclear power projects until 2035 was also welcomed.
The push to establish five hubs for medical value tourism and a broader focus on mental healthcare, care for Divyangjans, and cancer care were seen as strengthening India's healthcare and services economy.
Call For Industry Partnership
While praising the budget's direction, both USIBC and USISPF underlined the importance of execution, clarity in implementation, and deeper private sector participation to maximise impact.
They reaffirmed their commitment to working closely with the government of India to advance reforms, strengthen the investment climate, and deepen US-India commercial ties as India positions itself as a competitive, technology-driven, and globally integrated economy.
