With the Union Budget 2024 just around the corner, industries eye a booster dose for the manufacturing sector and reforms to foster the growth of industries.
Industry associations and chambers expect the government to roll out measures and changes in the policy to improve the country’s competitiveness as a global manufacturing hub and prioritise innovation and research and development.
The Narendra Modi government will table the Interim Union Budget 2024-25 on February 1, 2024.
The Federation of Indian Chambers of Commerce & Industry (FICCI), a non-governmental trade association, in its Budget expectations has suggested to the government the need for an ‘Indian Taxonomy’ comparable and comprehensive national policy framework for sustainable financing.
FICCI said to further boost the manufacturing sector, the government should incentivise and attract large investments from global manufacturing companies.
Gautam Kothari, president, Pithampur Audhyogik Sangathan said, “Changes in the taxation and extending the ambit of the Production Linked Incentive (PLI) schemes will help in giving a fillip to the manufacturing sector and industries.”
Industries also want the government to make changes and enhance allocation to support the MSME segment.
They said the government should make changes in the NPA classification and the 90 days limit for classifying overdue MSMEs should be increased to 180 days.
Virendra Porwal, vice president, Federation of Madhya Pradesh Chambers of Commerce and Industry said, “Increasing the limit to 180 days will help MSME as most of them have to divert their working capital towards paying loans or installments.”
Industries also expect the government to simplify compliance and policy to develop testing laboratories in every state for MSME.
Federation of Madhya Pradesh Chambers of Commerce and Industry said to encourage solar energy, the government should allow 25% grant for installation of solar power for MSME.
Industries also expect the government to extend the time period for obtaining licenses and permissions across different types of industries for at least 10 years.
