As a part of pre-Budget consultations meeting with Finance Minister Nirmala Sitharaman on Thursday, members of India Inc said it was desirable to reduce the Income Tax burden on the common man while increasing capital expenditure, and taking firm actions to control food inflation were imminent. The meeting which went on for nearly two hours reflected the industry’s key expectations from the upcoming Union Budget.
The meeting saw industry leaders and associations emphasise the need for infrastructure development to sustain economic growth. Besides, there was a significant focus on boosting the MSME (Micro, Small, and Medium Enterprises) sector, which is vital to the Indian economy and a major employment generator.
Presenting the eight key points for the Finance Minister’s consideration, Sanjiv Puri, President of the Confederation of Indian Industry (CII) put forth the recommendatioons providing Income Tax relief for lower-income brackets, streamlining employment-linked incentive schemes such as the Production Linked Incentive (PLI), and enhancing the ease of doing business. CII also made recommendations for agriculture and rural development.
Another industry lobby, Federation of Indian Chambers of Commerce & Industry (FICCI) highlighted the importance of a capex drive, fostering innovation, and simplifying the tax system. Former FICCI President Subhrakant Panda advocated for measures to sustain growth momentum, stimulate demand, focus on infrastructure development, control food inflation, support MSMEs, and prioritize innovation and research and development.
“We discussed broader issues, mainly what can be done to maintain and boost India’s growth momentum. Private sector capital expenditure is rising, and the numbers are encouraging,” Panda said after the meeting.
The Associated Chambers of Commerce and Industry of India (ASSOCHAM) said it was confident that the PM Narendra Modi-led government would strategically focus on capital expenditure, especially in infrastructure, education, and healthcare sectors in the Union Budget for 2024-25.
ASSOCHAM President Sanjay Nayar stated, “We welcome the government’s emphasis on fiscal consolidation and believe it will strategically increase capital expenditure. By prioritising investments in critical sectors, the government can stimulate economic growth while maintaining fiscal discipline.”
Among other industry leaders, Sanjay Kirloskar (CMD of Kirloskar Brothers), Arathi Krishna (MD of Sundram Fasteners), Vinod Aggarwal (President at SIAM), Neeraj Akhoury (President at Cement Manufacturers Association), Sanjay Aggarwal (President at PHD Chamber), Samir Somaiya (President at IMC Chamber), Shefali Misra (Vice President at Biocon), and Yash Pal Sachar (Vice President at Ashok Leyland), made vital recommendations for the Budget.
PHD Chamber of Commerce and Industry (PHDCCI) put forth several measures, including implementing the four labor codes across states to enhance industrial competitiveness and strengthening university-industry linkages to boost R&D activities. PHDCCI President Sanjay Aggarwal called for extending the MSME NPA timeline from 90 days to 180 days to provide relief to the sector. IMC Chamber’s Samir Somaiya reflected on the recent geopolitical events and the pandemic, emphasising the need to consider climate change and green resources in driving India’s future growth.
This meeting marked the third pre-Budget consultation held by Finance Minister Nirmala Sitharaman and senior FinMin officials. Earlier in the day, the Finance Minister had extensive discussions with financial sector players for the Budget, and on Wednesday, she held a pre-Budget meeting with economists. The full Budget 2024-25 is expected to be presented in Parliament next month.
(With PTI inputs)
