The Bengaluru Business and Industry Association (BBIA) has sought an extension of fiscal incentives under the National Credit Support Scheme (NCSS-2021) beyond March 2026, warning that the current sunset will disrupt ongoing investment plans. The petition sets out that beneficiaries include micro, small and medium enterprises that have delayed claims owing to project timelines and regulatory clearances. The association emphasised that uninterrupted support is necessary to sustain momentum in industrial expansion.

BBIA outlined that many projects remain in implementation phases and that investors calibrated their plans on the expectation of continuous incentives. The submission argued that abrupt withdrawal of benefits would affect capital expenditure schedules and stall supply chain modernisation across manufacturing and services. Industry representatives highlighted the need for policy predictability to attract further domestic and foreign investment.

The association indicated that extension would help preserve existing jobs and enable planned job creation in ancillary sectors, thereby supporting regional economic stability. BBIA noted that smaller firms face higher financing costs and that incentives act as a lever to reduce fiscal hurdles during ramp up. The note suggested that continuity of support would aid long term competitiveness of local firms in national and export markets.

BBIA proposed that policymakers engage with industry stakeholders to determine an appropriate timeframe for extension and to design clear eligibility criteria that prevent misuse. The association favoured targeted measures that align incentives with demonstrable investment milestones and employment outcomes. These proposals aim to balance fiscal prudence with the need to catalyse industrial growth.

BBIA said it will continue consultations with government departments and regulatory agencies to finalise technical modalities and urged a timely decision to avoid uncertainty for firms undertaking capital projects. The association stated that coherent policy signals are essential to sustain investor confidence and to support the broader economic recovery.