India's economy is likely to expand between 6.4% and 6.7% in FY26, with it remaining the world's fastest-growing large economy, the Confederation of Indian Industry (CII) estimated on Thursday.
Addressing a CII conference in New Delhi, CII President Rajiv Memani pointed out India's strength in the face of global economic and geopolitical instability, terming the nation a "bright spot" in a steadily fragmenting global order.
"Competitiveness is India's passport to prosperity," Memani added. "But it will have to be gained through reform, through innovation, and through trust. CII is committed to continuing to work with the government, industry, and citizens to drive India's emergence as a confident, competitive, and globally connected economy."
He underlined that domestic momentum in India is robust and resilient enough to absorb any external shocks. In today's climate—where global trade, technology, and alliances are reshaping quickly—India needs to root its advancement in competitiveness, anchored on scale, productivity, innovation, and resilience.
"It is our moment. But we must act decisively to seize it," Memani exhorted.
In order to address the needs of the nation's infrastructure and development without compromising fiscal discipline, CII suggested augmenting government revenues through strategic disinvestment in public sector enterprises (PSEs).
As estimated by CII, PSEs represent about 10% of the country's overall market capitalisation worth about ₹55 lakh crore. Selling 10% of the same would raise about ₹5 lakh crore. These monies, Memani added, could be used to fund public capital spending, pay down debt, create a Sovereign Wealth Fund to invest in strategic foreign assets, and fund key technologies.
To address the recurring issue of India's "missing middle" in industry, CII suggested a Capital Support Scheme to support small and medium enterprises (SMEs) that deal with research & development, adoption of technology, and generation of employment.
To minimize business expenses on land, CII suggested setting up a specialized Taskforce on "Land Availability at Reasonable Prices" to develop policies aimed at increasing India's competitiveness in manufacturing.
While India targets ambitious climate targets, specifically in the transition in energy, CII recommended developing sectoral strategies, with a focus on mobility, green hydrogen, and renewable energy corridors. The chamber also put forward proposals to initiate a Mission on Energy Transition, with the aim to enable the industrial transition to low-carbon options.
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