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US bodies welcome India's budget, urge deeper reform to boost bilateral ties
The two groups praised the budget for being "forward-looking" but also urged more extensive changes to strengthen relations between the United States and India.
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The U.S.-India Business Council (USIBC) and USA-India Chamber of Commerce (USAIC), two US-based bilateral business advocacy organizations, have welcomed India's Union budget for the year 2025-2026, which was presented by Finance Minister Nirmala Sitharaman on Feb. 1. While lauding several aspects of the budget, the two organizations have also urged clear and deeper policy reform to increase India's economic resilience and global trade competitiveness.
In a statement, USIBC president Ambassador Atul Keshap praised the budget's focus on critical sectors like agriculture, MSMEs, and exports, as well as the decision to reduce taxes for the middle class, which he believes will stimulate consumption, savings, and investments.
“USIBC welcomes the presentation of the Union Budget 2025-26, which emphasizes crucial sectors like agriculture, MSMEs, investment, and exports, reinforcing India’s role as a dynamic player in the global economy,” said Keshap. “As the world’s fifth-largest economy and a critical partner in the Indo-Pacific, India’s continued economic reforms are essential to strengthening commercial ties with the United States and unlocking new growth opportunities.”
On the proposed increase in FDI limits for the insurance sector, Keshap said it was a promising step but stressed that India’s regulatory landscape still poses challenges. “While the budget outlines a vision for economic resilience, technological advancement, and global competitiveness, India’s growth trajectory requires sustained and deeper reforms,” he emphasized. In that direction, he welcomed the government's plan to establish a high-level committee for regulatory reforms, urging for swift action to “identify and remove regulations detrimental to business.”
Additionally, Keshap highlighted the importance of aligning policies to attract greater U.S. investment in India, particularly with budget's focus on technological innovation, including initiatives in artificial intelligence and semiconductors. 'USIBC embraces the government’s innovation push via Deep Tech Fund of Funds and efforts to strengthen artificial intelligence (AI), semiconductors, and advanced computing – all areas of deepening bilateral ties."
Keshap further emphasized the importance of creating a balanced, predictable trade environment to strengthen U.S.-India economic ties. “In line with President Donald Trump’s emphasis on fair and reciprocal trade, India can consider bolder steps to address structural bottlenecks and foster a more predictable policy environment that instils investor confidence and promotes long-term strategic partnerships," he said.
Meanwhile, USAIC president Karun Rishi in a statement, also praised the budget's focus on stimulating domestic consumption and driving economic growth at a crucial time for the Indian economy. "At the heart of the budget lies a strong commitment to fiscal discipline, with improvements in the FY25 fiscal deficit and prudent budgeting for FY26. This careful balancing act ensures that while economic stimulus is prioritized, macroeconomic stability is maintained," he noted.
Describing the increase in the Foreign Direct Investment (FDI) limit in the insurance sector from 74 percent to 100 percent as a "landmark reform," Rishi maintained that it will attract global insurers, bringing in capital and technical expertise in the sector. He also dubbed the decision to create a Centre of Excellence for AI in education and create a dedicated deep tech fund to catalyze future startups as a progressive step by the government.
"While the budget lays a strong foundation for economic growth, India must remain vigilant against global economic headwinds, particularly the upcoming tariff discussions with the United States. Strategic engagement, proactive policy measures, and strong diplomatic negotiations will be crucial in navigating these challenges and ensuring sustained economic resilience and global trade competitiveness," Rishi concluded.
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