Job Creation Tops List of Budget Priorities Finds Survey

Mumbai: People view job creation and elevated food inflation as the two major challenges for the Indian economy in FY26. In addition, uneven domestic consumption, widening geopolitical conflicts and subdued external demand have been identified as other key challenges for the Indian economy in FY26 according to a survey by CareEdge Ratings. Over 72.2 per cent of respondents have identified job creation and skill development as key priorities for the upcoming budget. This is followed by 62.7 per cent prioritizing a consumption boost, 61.5 per cent advocating for capex revival, 25.4 per cent calling for support to export oriented sectors, and 24.9 per cent emphasizing fiscal consolidation.

As per the CareEdge Ratings survey, 52.7 per cent of participants believe that India’s medium-term economic outlook remains optimistic despite growth concerns, while 39.6 per cent are neutral and 7.7 per cent are negative.

According to the survey, 53.9 per cent of respondents expect India’s real GDP growth in FY26 to be between 6 per cent to 6.5 per cent, 18.9 per cent expect it to be between 6.6 per cent and 7 per cent and 17.2 per cent expect FY26 GDP growth to be less than 6 per cent and 10.1 per cent expect it to be more than 7 per cent.

CareEdge Ratings surveyed its stakeholders, primarily from services industry (including BFSI) and manufacturing, to gather insights and expectations for the upcoming Union Budget, focusing on key areas such as economic growth, infrastructure, tax reforms, and social welfare. A total 169 industry respondents participated in the survey.

In FY25, the Central Government budgeted a 17 per cent growth in capex, targeting Rs 11.11 lakh crore. However, the government is likely to miss its capex target for FY25.