Industry bodies are calling for a special focus on generating demand through income tax cuts, increased public spending, and job creation in the upcoming budget. These measures are expected to provide a boost to the economy and address challenges like inflation and sluggish demand.
As per news reports, CII President Sanjiv Puri recommended reducing the marginal tax rate on incomes up to ₹20 lakh to stimulate demand during the pre-budget consultations with Finance Minister Nirmala Sitharaman. Additionally, Puri suggested lowering the excise duty on fuel to help curb inflationary pressures.
Puri also proposed a 25% increase in government capital expenditure (capex) to drive growth. Aligning customs duties to integrate India into the global value chain was another key suggestion. The ITC chief emphasized the need for measures to improve credit access for MSMEs and the development of rural industrial parks near industrial hubs.
Ficci echoed the need for a government push on public capex, particularly in physical, social, and digital infrastructure. In light of the ongoing global uncertainties, Ficci stressed that maintaining growth momentum requires continued investment in infrastructure development.
Assocham President Sanjay Nayar highlighted the challenges faced by MSMEs, particularly regarding access to credit. He urged for the removal of collateral requirements and called for greater focus on skilling, as well as a more business-friendly presumptive tax mechanism for small businesses and data centres.
Ficci also suggested continuing efforts to rationalize TDS and TCS rates. They proposed that the government should eliminate deductions and collections for items already covered under the GST system, as the transaction data is already available, making these measures redundant.
Several industry bodies, including Ficci, proposed measures to support women’s workforce participation. These included tax exemptions for families with children under a certain age and promoting daycare and childcare benefits for women in the workplace.
In addition to broad recommendations, industry bodies called for sector-specific measures. Proposals for the defence sector, the PCB (Printed Circuit Boards) industry, agriculture, health, and education were also discussed to provide targeted support for these vital areas of the economy.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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