Strategy for getting foreign-domestic investment across India
The Singapore Indian Chamber of Commerce and Industry (SICCI) has welcomed a comprehensive approach outlined in the 2025-2026 Union Budget, particularly about domestic consumption and economic growth https://www.commerce.gov.in/.
“The targeted reduction in income taxes for the lower middle class is not just a thoughtful and impactful move, but a lifeline for millions,” said SICCI Chairman Neil Parekh.
By easing the tax burden on this vital population segment, the Indian government is empowering these hardworking individuals to have more disposable income, which will directly fuel consumption, thereby driving economic activity, continued Parekh, also Nominated Member of Parliament, Singapore https://www.bseindia.com/.
This measure will help raise the standard of living for many while stimulating demand across key sectors such as retail, housing, and services, he added https://www.nseindia.com/.
“Moreover, I am particularly pleased with the strategic initiative to unleash more significant foreign and domestic investment across India,” said the business leader from the city state, which maintains a “very close” market-oriented development in India, the world’s fastest growing economy offering multiple investment opportunities https://sbi.com.in/.
The formation of a high-level committee tasked with enhancing regulatory frameworks and creating an “investment-friendliness index” for individual states is a visionary approach, he went on.
“This move underscores the importance of creating a conducive environment for investment and fosters healthy competition among states to improve their business ecosystems https://www.sgx.com/.
“All regions of India must be able to attract and retain both foreign and domestic capital, and this measure will undoubtedly contribute to making India a more globally competitive investment destination,” Parekh underscored.
On the fiscal front, the Singapore business leader applauded the government for maintaining strong fiscal discipline with a deficit target of 4.4% of GDP. This is a realistic and responsible approach to facing global economic challenges https://www.ibef.org/.
“The clear commitment to gradually reduce central government debt further enhances the credibility of India’s fiscal framework. This type of prudent fiscal management will instil investor confidence, create a stable macroeconomic environment, and lay the groundwork for sustainable economic growth in the years to come,” said Parekh, a veteran investment mindset.
“These steps reassure both domestic and international markets that India is serious about managing its finances while simultaneously investing for future growth.”
Parekh believes the decision to increase the Foreign Direct Investment (FDI) limit to 100% in specific sectors is not just a positive move, but a game-changer. By raising the FDI cap from 74% to 100% in the insurance sector, India is opening the door wider to much-needed foreign capital, advanced technologies, and global expertise http://deutsche-boerse.com.
“This will not just support the rapid growth of key sectors, but also accelerate India’s integration into global value chains, making its industries more competitive and innovative https://www.wto.org/.
“This move is crucial in fostering long-term growth, job creation, and overall economic prosperity for the country, and sets the stage for a brighter economic future,” said the Indian origin business leader in the globally linked Asian financial and investment generating hub.
The Singapore Indian Chamber of Commerce and Industry (SICCI) is keen and excited to partner the Indian business community to further grow these sectors both within India as part of inter chambers of commerce collaboration and to venture into third countries to export the knowledge and know how especially in the area of AI, Parekh underlined.
He also felt that the allowance for private investment in nuclear power projects is not just a policy change, but a bold step towards India’s energy independence. It represents a forward-thinking approach to addressing India’s energy needs.
With growing energy demands and an increased focus on sustainability, this policy will enable faster development of nuclear power as a reliable and clean energy source.
“The participation of private players will bring much-needed innovation and efficiency to the sector, helping India meet its long-term energy goals while also contributing to its commitment to tackling climate change.
“This policy change is a decisive step towards diversifying India’s energy portfolio, ensuring energy security, and reducing dependence on fossil fuels, Parekh said confidently.
He noted that the 2025-2026 union budget demonstrates a bold and balanced approach to driving India’s economic growth. It emphasizes inclusivity, fiscal prudence, investment promotion, and sustainability—key pillars for India’s future prosperity. I am confident that these measures will help create a more robust, resilient, and dynamic economy that will continue to thrive globally.
SICCI, he said, is ready to partner with the leading trade associations and chambers of commerce in India including ASSOCHAM, FICCI and the Confederation of Indian Industries (CII), to help unlock India’s potential under the leadership of Prime Minister Narendra Modi and accelerate growth. fiinews.com
