Wednesday 30 / October / 2024
New Delhi: As part of pre-budget deliberation, industry representative bodies met Union Minister for Finance and Corporate Affairs Nirmala Sitharaman on Wednesday in the national capital.
During the meeting, industry representatives demanded the restructuring of GST tax, lowering of tax, and increased capital expenditure.
The meeting was attended by CII President Sanjiv Puri, Sanjay Nayar, President of Assocham, and Subhrakant Panda, Immediate Past President of FICCI, among others.
During the meeting, CII suggested the government increase capex spending by 25 per cent over the revised estimate of FY24, adding that the enhanced capex is to be considered for deployment in rural infrastructure. It demanded a high-powered expert group be set up to review the FRBM Act. Enacted in 2003, the aim was to improve fiscal management and public fund management.
The industry body expressed the need to boost consumption, suggesting the relief in income tax. It also suggested upward revision of MNREGA minimum wages and increased Direct Benefit Transfer amount in schemes such as PM KISAN.
FICCI emphasised the need to support growth momentum by energising demand, and laying thrust on infrastructure development. The industry body suggested controlling food inflation, supporting MSMEs and prioritising innovation and research and development in the country.
During the meeting, the PHD Chamber of Commerce and Industry suggested that the ministry stimulate the manufacturing sector growth.
Emphasising the need for subsidies in manufacturing, the industry body suggested the government provide capital investment subsidies and customs duty exemptions for wind turbine manufacturing investments to encourage industry expansion. It has also batted for the toy industry by demanding a uniform national toy policy.
The other demands of the body include access to Government e-Marketplace (GeM) contracts by reducing the fee, payment facilitation councils for the Ministry of Micro, Small and Medium Enterprises (MSMEs), focus on ease and cost of doing business, boosting startups and logistics sectors, etc.
Before the announcement of the union budget, the finance ministry consults with the major stakeholders of the economy, aiming at garner feedback and suggestions from key stakeholders to shape the upcoming Union Budget.
Earlier, after a meeting that took place between the finance ministry and financial and capital market representatives, Nilesh Shah, Managing Director of Kotak Mutual Fund, said, "I shared with the Honourable Finance Minister that under the aegis of our regulator SEBI, mutual funds have spread financial awareness. We have enlisted more than 4 crore Indians to participate in the journey of Viksit Bharat and secure their financial freedom. We need to reach out to far more Indians now to secure their Financial Freedom."
"We requested Honourable FM to launch a Jan Nivesh campaign to create Financial inclusion for crores of Indians who are stuck in Ponzi schemes and speculations," Nilesh Shah added.
