Industry body PHD Chamber of Commerce and Industry (PHDCCI) has called for focus across digital infrastructure with investment in data centres, broadband and digital skilling. The industry association also suggested the government to step up on the gas on clean energy, agriculture, health, education, housing and urban renewal to sustain long-term growth and employment.

In its budget recommendations, PHDCCI said “digital infrastructure has emerged as a foundational driver of modern economic activity” and stressed that higher investment in broadband connectivity, data centres and digital skilling would support services-led growth and job creation. 

It noted that “digital public infrastructure lowers entry barriers for MSMEs, and enhances productivity across sectors,” adding that digital investments offer “high spillovers at relatively lower capital cost.” 

“Last-mile connectivity and workforce readiness should be strengthened to capture emerging opportunities in services exports and technology-driven growth,” the chamber said. 

Transition to clean energy is central to economic growth

On clean energy and green infrastructure, PHDCCI said the transition to cleaner energy sources is now central to economic and strategic planning. It pointed out that a focus on grid modernisation, renewable integration, EV charging infrastructure and clean-tech manufacturing can attract private capital into green sectors. 

“Duty rationalisation on critical minerals and clean-tech inputs can further strengthen domestic manufacturing capacity. Budget 2026–27 can support India’s transition to clean energy by aligning fiscal policy with long-term sustainability goals,” the industry body said.

Rural growth depends on productivity enhancements

Highlighting agriculture and rural infrastructure, PHDCCI said “sustainable rural growth depends on productivity enhancement and efficiency investment rather than short-term support.” 

It called for greater emphasis on irrigation, water management, cold chains, storage and agro-processing infrastructure to raise farm productivity, reduce post-harvest losses and improve rural incomes. 

“Improved rural infrastructure also strengthens supply chain linkages between farmers, processors, and markets, supporting price realisation and export potential. A budgetary focus on agriculture infrastructure would signal a shift toward long-term rural income diversification and security,” the body said.

Need to prioritise capital spending in health and education

On human capital, PHDCCI stressed the need to prioritise capital spending in health and education. It said “the demographic advantage of any country depends on sustained investment in human capital,” calling for higher investment in hospitals, skilling centres and higher education research infrastructure. 

The chamber flagged growing skill mismatches across industries and said investment in vocational and technical training should be a top priority to enhance capacity, quality and access.