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Union Budget 2026-27: FDI improves, but excess capacity remains

Manufacturers still have excess capacity to utilise, hindering new investments

fdi
BS Reporter
1 min read Last Updated : Feb 01 2026 | 11:25 PM IST
  Challenges 
 
> Manufacturers still have excess capacity to utilise, hindering new investments
 
> Though net FPI outflow is taken care of by larger net FDI inflows, uncertain global developments pose risks
 
Takeaways 

Also Read

 
> The Budget proposes to facilitate sales by eligible manufacturing units in Special Economic Zones to Domestic Tariff Area at concessional rates to increase capacity utilisation  
> The Budget provides tax holiday to any foreign company offering Cloud services globally by using data centre services in India, till 2047

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Topics :FDIBudget 2026Union Budgetmanufacturing

First Published: Feb 01 2026 | 11:25 PM IST

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