Pre-Budget Consultations with PM Modi: Economists Call for Tax Incentives and Export Diversification

Prime Minister Narendra Modi on Tuesday met leading economists, industry experts, and NITI Aayog officials for pre-budget consultations. During the meeting, economists and experts called for tax incentives to boost household savings and targeted policy support for data centres, according to The Economic Times report.

In addition, the discussions also focused on greater integration of artificial intelligence and robotics. The group even explored the role of AI as an enabler of cross-sectoral productivity and also discussed the continued scaling of India’s Digital Public Infrastructure (DPI).

Besides technology, industry experts also highlighted the need to accelerate diversification of India’s services exports, noting that higher-value digital, financial, and knowledge-based services could help cushion the economy against global trade volatility.

They urged the Centre to use existing free trade agreements more effectively to expand market access. It is important to mention that India announced a bilateral free trade agreement with New Zealand earlier this month.

New Delhi also signed a comprehensive economic partnership with Oman. And trade negotiations with the European Union and the United States are also underway.

Industry issues such as the weaponisation of access to critical minerals by some countries were discussed at the meeting. Experts suggested that India may need to develop a coordinated strategy to secure mineral resources essential for the energy transition, electronics, and advanced manufacturing.

Economists recommended that the government resume fiscal consolidation efforts after years of elevated public capital expenditure, calling for calibrated tapering as private investment begins to pick up.

However, the Centre may need to retain fiscal space for priority sectors and ongoing infrastructure projects, the ET report added.

PM Modi, while addressing the gathering, stressed that India’s policymaking and budgeting must remain anchored with vision for 2047. He also spoke about the need for ensuring that the nation remains a vital hub for the global workforce and international markets.

According to NITI Aayog, the pre-budget consultation focused on strategic insights to enhance productivity and competitiveness across the manufacturing and services sectors.

The participants noted that the unprecedented series of economic and policy reforms undertaken across sectors in 2025, and their consolidation in the coming year, would ensure alignment with India’s Viksit Bharat goals and position the country among the world’s fastest-growing economies.

Union Finance and Corporate Affairs Minister Nirmala Sitharaman is expected to present the Union Budget on February 1.