The Industry bodies on Thursday met the Union Finance Minister Nirmala Sitharaman and presented to her their thoughts and opinions on the upcoming Budget.
In this regards, the PHD Chamber of Commerce and Industry (PHDCCI) suggested reforms to strengthen India’s journey towards Viksit Bharat like to enhance the manufacturing share in GDP to 25% by 2030, expand the PLI scheme beyond the 14 sectors with addition of more labour intensive sectors, change in classification norms of MSMEs for NPAs from the 90 days limit to 180 days, rationalization of direct taxes for the middle class.
It also suggested focus more on tier 2 and 3 cities with state of the art infrastructure and smart villages with adequate facilitation of public utilities.
Further, the PHDCCI suggested status quo on the corporate tax rates, strengthen University-Industry linkages to enhance R&D activity in the country, reduce costs of doing business including costs of capital, costs of power, costs of logistics, costs of land and costs of compliances.
Another key measures suggested were to implement the four labour codes across the states to enhance the competitiveness of the industry, and Strengthen supply chains and address the shortages in key food items to mitigate inflationary pressures.
Sanjeev Agrawal, President, PHDCCI, after meeting with the Finance Minister said, “We recommend status quo on the corporate tax rate at 22% for existing companies and 15% for new manufacturing companies incorporated after October 1, 2019 to enhance the manufacturing share in GDP.”
“The middle class must be spared from the 30% tax rate and this rate must be applicable only to those with taxable income above Rs 40 lakh, this will support consumption demand in this country,” he added.
Another industry body Federation of Indian Chambers of Commerce & Industry (FICCI) laid down a list of demands including push for infrastructure development and taking further measures to rein in food inflation for the upcoming full budget of Modi 3.0.
FICCI has recommended continued thrust on govt capex, steps to boost the agri-economy including climate resilience, support for MSMEs, and promoting sustainability among other points.
“We look forward to a prudent budget that builds upon the strengths of Indian economy for accelerated growth and remains committed to fiscal consolidation,” said Subhrakant Panda, Immediate Past President, FICCI said.
“The Union Budget, being the first major public policy announcement of the government, is expected to set the tone for the next five years in terms of government’s policy direction,” he noted.
Further in a statement, FICCI noted that the government should continue to lay thrust on public capex on physical, social and digital infrastructure in the upcoming Union Budget.
“The capital expenditure outlay for FY25 should be increased by 25% over RE for FY24 to Rs 11.8 lakh crore,” said the industry body.
Confederation of Indian Industry (CII) also suggested the government increase capex spending by 25% over the revised estimate of FY24.
It said that the enhanced capex is to be considered for deployment in rural infrastructure.
CII further demanded a high-powered expert group be set up to review the FRBM Act.
