Industry Leaders Urge Tax Cuts to Boost Demand in Indian Economy
Industry leaders in India are calling for crucial measures to stimulate demand in the economy, including income tax cuts, increased public spending, and job creation. During pre-budget consultations with Finance Minister Nirmala Sitharaman, key figures from various industry bodies emphasized the importance of these actions to revitalize the economy.
Calls for Income Tax Reduction and Public Spending Increase
CII president Sanjiv Puri suggested a reduction in the marginal rate of personal tax on income up to Rs 20 lakh to boost demand. He also recommended slashing excise duty on fuel to combat inflation. The focus on small businesses was highlighted as a critical area for growth in the upcoming budget. Emphasis on MSMEs and Credit Flow
ITC chief proposed a 25% increase in government capital expenditure and alignment of customs duties to integrate India into the global value chain. Moreover, steps to enhance credit flow to Micro, Small, and Medium Enterprises (MSMEs) and the development of rural industrial parks near key industrial hubs were emphasized. Urgent Attention Needed for MSMEs
Assocham president Sanjay Nayar echoed the importance of supporting MSMEs, stressing the need for easier credit access and skill development initiatives. Simplifying tax mechanisms for small businesses, along with measures to facilitate childcare benefits for women, were also highlighted as crucial steps for economic growth. Recommendations for Sector-Specific Measures
Industry representatives recommended continued efforts to streamline tax collection processes, with a focus on rationalizing TCS and TDS rates. Suggestions were made to promote female workforce participation and introduce sector-specific measures for defense, electronics, agriculture, health, and education.
ITC chief proposed a 25% increase in government capital expenditure and alignment of customs duties to integrate India into the global value chain. Moreover, steps to enhance credit flow to Micro, Small, and Medium Enterprises (MSMEs) and the development of rural industrial parks near key industrial hubs were emphasized.
Urgent Attention Needed for MSMEs
Assocham president Sanjay Nayar echoed the importance of supporting MSMEs, stressing the need for easier credit access and skill development initiatives. Simplifying tax mechanisms for small businesses, along with measures to facilitate childcare benefits for women, were also highlighted as crucial steps for economic growth. Recommendations for Sector-Specific Measures
Industry representatives recommended continued efforts to streamline tax collection processes, with a focus on rationalizing TCS and TDS rates. Suggestions were made to promote female workforce participation and introduce sector-specific measures for defense, electronics, agriculture, health, and education.
Industry representatives recommended continued efforts to streamline tax collection processes, with a focus on rationalizing TCS and TDS rates. Suggestions were made to promote female workforce participation and introduce sector-specific measures for defense, electronics, agriculture, health, and education.
As the Indian economy navigates global challenges, the push for income tax cuts, increased public spending, and targeted interventions for small businesses and key sectors remains critical for sustainable growth. The upcoming budget announcement is eagerly awaited to see how these recommendations will be incorporated to drive economic recovery and long-term prosperity.
