India eagerly waits for its final budget before the upcoming summer polls to be unveiled, Finance Minister Nirmala Sitharaman is set to present a roadmap that promises to shape the nation's economic landscape. Industry expectations are high, spanning from infrastructure boosts to manufacturing incentives, import duty tweaks, and crucial tax reforms.
Industry expectations from India's budget
In this budget, the Confederation of Indian Industry (CII) urges a 20 per cent increase in infrastructure spending. This bold call, coupled with demands for extended manufacturing incentives and adjustments to import duties, sets the tone for an economic blueprint aiming to propel growth in the face of political transition.
The CII outlines key priorities for India's Budget 2024, emphasising the need for growth triggers. The focus spans across vital sectors, reflecting the aspirations of industries looking for policy measures that will foster economic development.
Key focus points: Infrastructure, manufacturing & import duties
As we delve into the specifics, the Confederation of Indian Industry puts forward a comprehensive set of proposals that address crucial sectors. The Federation of Indian Chambers of Commerce and Industry (FICCI) pitches for a five-year extension of the concessional tax regime for new manufacturing facilities.
The Production Linked Incentive (PLI) scheme, a flagship initiative, is anticipated to expand into labour-intensive sectors such as apparel, toys, footwear, and chemicals. Import tariffs, proposed for a three-tier duty structure, aim to address concerns where input taxes surpass final goods.
In the gems and jewellery sector, there's a call for lower import duties, while the steel industry seeks higher levies on finished steel to counter rising imports from China.
Critical tax reforms and social spending
As the budget unfolds, the CII outlines critical tax reforms, advocating for an increase in the tax exemption limit linked to inflation to boost consumption. There's a plea for consistency in the capital gains tax structure across asset classes, be it debt, equity, or immovable assets.
In the realm of social spending, a call resonates for increased allocation to healthcare and education. The CII urges the combined efforts of federal and state governments to elevate spending on these critical sectors, addressing current spending gaps.
As Finance Minister Nirmala Sitharaman reveals India's budgetary roadmap, industries across the spectrum eagerly await the details that will shape the economic trajectory of the nation.
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