The government should increase capex spend by 25% over the FY24 revised estimate of Rs 9.49 lakh crore, and a high-powered expert group may be set up to review the FRBM Act, said Sanjiv Puri, managing director of ITC Ltd. and president of the Confederation of Indian Industry.
The body has also suggested that federal structures, like the GST Council, could be set up for key reforms in land, labour, power, agriculture and fiscal sustainability. To boost consumption, relief in income tax at the lower end of income slabs, an upward revision of MGNREGA minimum wages and an increase in the direct benefit transfer amount in schemes, such as PM Kisan, were also recommended by CII.
Speaking to NDTV Profit after the meeting, Samir Somaiya, president of IMC Chamber of Commerce and Industry, said that conversations included maintaining the growth momentum in a sustainable way.
“Discussions included green transition and adaptation and mitigation of climate change, while fuelling growth with green resources,” he said.
The PHD Chamber of Commerce and Industry said that the government should expand the PLI scheme beyond the 14 sectors to include medicinal plants, handicrafts, leather and footwear, gems and jewellery, and the space sector, among others, while also placing an ask for the implementation of the four labour codes.
The PHD Chamber of Commerce also recommended changing the classification norms of MSMEs for NPAs and to cover medium enterprises in the MSME Facilitation Councils for settlement of delayed payments.
Meanwhile, the Federation of Indian Chambers of Commerce and Industry also recommended the government should continue its thrust on public capex on physical, social and digital infrastructure in the upcoming Union budget, including a 25% increase in capex.
Simplifying tax deducted at source provisions and capital gains tax regime, particularly having two to three broad buckets of different types of assets, long-term holding period for such assets, indexation benefit eligibility, and bringing long-term and short-term capital gains tax rate for such assets without distinction between residents and non-residents, were also among FICCI’s suggestions.
