Economists have urged the finance ministry to frame policies that encourage private sector investment while maintaining the path of fiscal prudence. They have also called for more reforms in the non-financial sector and the introduction of a comprehensive manufacturing policy.
Finance Minister Nirmala Sitharaman, along with Chief Economic Advisor (CEA) Anantha Nageswaran, met a group of economists on Monday as part of the pre-Budget consultation exercise.
“One of the main suggestions from the economists was that the government should follow the fiscal glide path. They also proposed more reforms for the non-financial sectors and emphasised the need to enhance private sector investment,” said a source present at the meeting.
Several participants recommended that the government come up with a comprehensive manufacturing policy, particularly aimed at supporting the MSME sector.
“The aim of such a policy should be to reduce foreign dependence for goods and to develop local technology. The government should promote a plug-and-play model so that setting up manufacturing units is no longer cumbersome,” said Ashwani Mahajan, economist and co-convenor of the Swadeshi Jagran Manch.
Mahajan also suggested imposing a vacant land tax on unutilised land held by both private and public sector entities so that these lands can be put to productive use.
He further highlighted that street vendors are a major source of urban employment and should be provided designated spaces to operate without harassment from local authorities. For rural employment, he recommended forming village clusters at the block level to promote the development of rural industries.
The Finance Minister held the first pre-Budget consultation with leading economists in connection with the upcoming Union Budget 2026–27 in New Delhi on Monday. Secretary, Department of Economic Affairs (DEA), and other senior officials were also present.
Prominent economists such as D.K. Joshi, Chief Economist, CRISIL; Ridham Desai, Managing Director, Morgan Stanley; and Neelkanth Mishra, Chief Economist, Axis Bank, also attended the meeting.
Later, the minister held another round of consultations with representatives of farmers’ associations and agriculture economists, where senior officials from the Ministry of Agriculture & Farmers Welfare were present.