In a series of pre-budget consultations, industry leaders from prominent organizations such as the Confederation of Indian Industry (CII), PHD Chamber of Commerce and Industry (PHDCCI), and the Federation of Indian Chambers of Commerce and Industry (FICCI) presented a range of recommendations to boost economic growth, enhance ease of doing business, and promote sustainable development. Meetings with Revenue Secretary Sanjay Malhotra and his team underscored key areas for government focus in the upcoming Union Budget.
The Confederation of Indian Industry (CII) emphasized the need for a substantial increase in government capital expenditure, proposing a 25% rise compared to the previously outlined 16.8% increment. They highlighted the importance of creating rural infrastructure, including irrigation systems, warehousing, and cold chain facilities, to support agricultural productivity and rural economic growth. CII suggested measures such as providing marginal relief in income tax, reducing excise duties on petrol and diesel, raising DBT amount under PM Kisan, and increasing minimum wages for MNREGA to boost consumption demand in the short term.
CII also proposed initiatives like a mission on Advanced Manufacturing and Advanced Materials to enhance India’s manufacturing capabilities and emphasized the importance of agriculture and rural development. They called for the creation of non-farm rural jobs through village-level entrepreneurship and the development of integrated rural business hubs. Additionally, CII suggested the establishment of a Green Transition Fund to support the decarbonization of industries, especially for Micro, Small, and Medium Enterprises (MSMEs).
The PHD Chamber of Commerce and Industry (PHDCCI) recommended an increase in personal tax exemptions and a reduction in penalization clauses to simplify the tax system and alleviate the burden on taxpayers. They highlighted the heavy tax burden on the Indian middle class, particularly those earning Rs 15 lakhs or more, and proposed that the 30% tax slab should apply only to incomes above Rs 40 lakhs. PHDCCI also suggested promoting electric vehicles by increasing the depreciation rate on these vehicles to 60%.
In a pre-budget meeting with the Finance Ministry, the Federation of Indian Chambers of Commerce and Industry (FICCI) stressed the importance of simplifying the capital gains tax. They emphasized the need to maintain growth momentum over the next five years and avoid requests for concessions and exemptions. FICCI highlighted India’s strong position in terms of growth forecasts and robust tax collections, with a focus on reducing litigation and finding mutually agreeable solutions to disputes.
Overall, the recommendations put forth by these industry leaders aim to steer India towards sustainable economic growth, enhance the ease of doing business, and promote development across various sectors. The upcoming Union Budget will be crucial in implementing these suggestions and setting the course for India’s economic trajectory in the years to come.
