EY India has recommended extending the existing production-linked incentive (PLI) scheme to emerging technology areas including artificial intelligence, space, and robotics, while urging the financial year 2026-27 (FY27) union budget to focus on growth continuity and tax certainty, including the introduction of a customs dispute resolution mechanism.
The firm said that a forward-looking policy approach is needed to strengthen investor confidence and encourage greater private sector participation. It added that widening the scope of the PLI scheme to new technology segments could help stimulate private investments.
On taxation, EY India mentioned that businesses are seeking a clear commitment to tax certainty along with simpler and more streamlined compliance processes. On the indirect tax front, it proposed a one-time settlement scheme under Customs law to help resolve long-pending disputes, similar to earlier dispute resolution initiatives that helped unlock revenue tied up in litigation.
