Industry representatives recently met with Finance Minister Nirmala Sitharaman ahead of the upcoming union budget. The main focus of the meeting was on restructuring GST taxes, reducing taxes, and increasing capital expenditure. Various industry bodies such as CII, Assocham, and FICCI suggested different measures to boost the economy.
CII proposed a 25% increase in capital expenditure over the revised estimate of FY24, with a focus on rural infrastructure. They also called for the formation of a high-powered expert group to review the FRBM Act, aimed at improving fiscal management. FICCI emphasized the need to energize demand, support growth, control food inflation, and prioritize innovation and research in the country.
The PHD Chamber of Commerce and Industry suggested stimulating manufacturing sector growth by providing subsidies and exemptions for investments in wind turbine manufacturing. They also called for a uniform national toy policy, access to government contracts, payment facilitation councils for MSMEs, and a focus on ease of doing business, startups, and logistics sectors.
Before the union budget is announced, the Finance Ministry consults with key stakeholders to gather feedback and suggestions to shape the upcoming budget. During a meeting with financial and capital market representatives, Nilesh Shah of Kotak Mutual Fund suggested launching a Jan Nivesh campaign to promote financial inclusion and steer individuals away from Ponzi schemes and speculations.
Overall, industry bodies are urging the government to take measures to boost consumption, support growth, and prioritize key sectors such as manufacturing, startups, and infrastructure development. These recommendations will likely play a crucial role in shaping the policies and allocations in the upcoming union budget.
