New Delhi, Feb 2 (PTI) A more ambitious push by India for systemic reforms in taxation and regulatory frameworks will help it further enhance its global competitiveness, the US-India Business Council (USIBC) said on Sunday, welcoming the country's "forward-looking" Union Budget for 2025-26.

While the budget outlines a vision for economic resilience and technological advancement, India's growth trajectory requires "sustained and deeper reforms", USIBC President, Ambassador Atul Keshap, said.

The USIBC is a powerful lobby group that works to promote trade and investment ties between India and the US.

Keshap complimented the Union Budget's focus on crucial sectors like agriculture, MSMEs, investment, and exports.

"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," he said.

The USIBC president said though the foreign direct investment remains steady in India, it has not seen significant acceleration, and businesses continue to "navigate complex regulatory landscapes".

"USIBC urges a more ambitious push for systemic reforms in taxation, regulatory frameworks, and business procedures to further enhance India's global competitiveness and attract greater investment," he said in a statement.

"USIBC, therefore, welcomes the plan to set up a high-level committee for regulatory reforms but urges a quick movement to identify and remove regulations detrimental to business," he said.

The chief of the lobby group also welcomed cut in income tax for the middle class, saying it will help boost consumption, savings and investments.

He said a "balanced and transparent" trade environment is vital to deepening US-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.

"In this regard, the government's recognition of critical minerals as a strategic asset, along with a National Critical Minerals Mission and an allocation of Rs 450 crore, for the forthcoming financial year is a small step in the right direction, but further significant efforts are needed to create a truly self-reliant supply chain," he added.

Keshap also lauded India's announcement on plans to set up a 'Nuclear Energy Mission'.

"India's commitment to energy security is commendable, particularly the announcement of a Nuclear Energy Mission for Small Modular Reactors (SMRs) with an outlay of Rs 20,000 crore," he said.

"However, its long-term success will depend on streamlined regulatory approvals and a clear roadmap for private-sector engagement," he said.

Likewise, the National Manufacturing Mission, with its focus on high-value sectors such as solar PV cells, EV batteries, wind turbines, and high-voltage transmission equipment, signals progress but requires greater policy certainty and ease of doing business, the USIBC chief said.

"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," he said.

The lobby group also welcomed the creation of a geospatial mission.

"Similarly, while the proposed increase in FDI limits for the insurance sector from 74 per cent to 100 per cent is promising, review of guardrails and conditionalities associated with foreign investments in the insurance sector will help maximize investor interest in this sector," Keshap said.

He said the focus on manufacturing, logistics, and supply chain modernization is crucial for India's global integration.

The USIBC also welcomed the exemption of 36 lifesaving drugs from basic Customs duty, along with concessional duty on six more, saying the move will improve access to imported drugs.

"While the Customs duty waiver is welcome, deeper structural reforms are needed to address the broader challenges of access, affordability and innovation," Keshap said.

"While initiatives like cancer centres and R&D funding are positive, they don't address deeper issues in regulatory inefficiency, pricing, and transparency," he said.

"USIBC is actively engaging with stakeholders to identify key pain points affecting businesses in U.S.-India corridor and provide informed recommendations that will help both governments enhance commercial flows in both directions," he added. PTI MPB KVK KVK