Washington DC [US], February 2 (ANI): The US-India Strategic Partnership Forum (USISPF) on Sunday (local time) welcomed the Union Budget 2026-27, describing it as a progressive and comprehensive roadmap that strengthens India's competitiveness, boosts investment, and enhances ease of doing business.

In a statement, USISPF said the Budget's strong focus on trade facilitation, customs modernisation, tariff rationalisation, banking sector reforms, and strategic sectoral support aligns closely with industry priorities and reinforces India's position as an attractive global investment destination.

USISPF particularly welcomed the comprehensive customs reforms aimed at modernising trade processes and improving logistics efficiency. Measures such as end-to-end digitalisation, AI-powered non-intrusive inspection, phased scanning of containers at major ports, and extension of the Single Window system to express cargo are expected to enhance transparency, reduce dwell times, and streamline cargo movement.

On the tariff front, the forum said targeted customs duty rationalisation would support India's manufacturing, clean energy, and high-technology ambitions. The reduction of Basic Customs Duty to nil on critical minerals, solar manufacturing inputs, Li-ion Battery Energy Storage Systems (BESS) capital goods, nuclear power equipment, select electronics, aircraft components, MRO materials, and critical medicines is expected to lower input costs and improve export competitiveness.

Export-orientated sectors such as leather and footwear have also received extended duty-free input benefits, while baggage duty for personal imports has been rationalised from 20 per cent to 10 per cent.

'These measures are expected to reduce input costs for sunrise sectors, simplify the tariff structure, and strengthen India's export competitiveness,' the statement read.

USISPF also welcomed the Centre's announcement of a high-level committee on banking sector reforms, which will review the sector's structure, efficiency, and preparedness to support India's next phase of economic growth while safeguarding financial stability and inclusion.

'This initiative is critical for strengthening capital intermediation, mobilising resources efficiently, and enabling investment that drives broad-based economic growth,' the statement added.

Highlighting the Budget's sectoral focus, USISPF noted sustained support for semiconductors, electronics manufacturing, healthcare, skills development, logistics, agriculture, and allied services. Initiatives such as the India Semiconductor Mission 2.0 and the Rs 40,000 crore Production Linked Incentive (PLI) scheme for electronics signal long-term commitment to high-technology manufacturing and resilient supply chains.

Commenting on the Budget, USISPF President and CEO Mukesh Aghi said the reforms across customs, taxation, and strategic sectors would modernise India's economic architecture and fuel next-generation growth and also welcomed the long-term tax holiday for cloud services provided through local data centres, calling it a landmark policy with the potential to catalyse large-scale global investment and job creation.

'We particularly welcome the Finance Minister's announcement introducing a long-term tax holiday for cloud services provided through local data centres. This landmark policy has the potential to do for India's cloud and data centre ecosystem what the IT services incentives did in the early 2000s: catalyse large-scale global investment, expand export revenues, and drive long-term job creation and capability development,' Aghi said, as noted in the statement.

'Industry also welcomes the measures announced to nurture the local AI, IT, and data centre ecosystem. By incentivising investment, supporting infrastructure, and promoting innovation, these initiatives will strengthen India's technology ecosystem, enhance competitiveness, and position the country as a global hub for advanced digital services,' he added.

Aghi further added that the forum is looking forward to continued collaboration with the Indian Government to strengthen the country's investment climate and deepen US-India economic and commercial ties.

Earlier on Sunday, Union Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 in Lok Sabha, her ninth consecutive Union Budget, asserting that it is driven by 'Yuvashakti' and based on 'three kartavyas'. (ANI)