Union Budget: Infrastructure push, structural reforms for sustainable growth top industry wish list

Union Budget: Infrastructure push, structural reforms for sustainable growth top industry wish list

Union budget

IANS

As the government unveils the Union Budget for 2024-25 on July 23, business leaders and experts have stressed the importance of structural reforms to spur sustainable and inclusive economic growth, with infrastructure development playing a crucial role in India’s journey towards becoming the third largest economy.

According to the industry chambers, India can overcome the current challenges and emerge as a stronger, more competitive economy in the long term by prioritising structural reforms, strategic infrastructure development, targeted sectoral initiatives and a rationalised tax regime.

Assocham has recommended accelerating investments through Public Private Partnerships (PPPs) with a focus on key sectors such as transport, energy, water supply and digital infrastructure. This will enhance connectivity, improve productivity and strengthen India’s overall competitiveness.

To address growing concerns about environmental sustainability, the leading chamber of commerce has called on government to implement policies and incentives that promote clean technologies, renewable energy sources and sustainable practices in sectors such as agriculture, manufacturing and transportation.

Market

IANS

According to industry experts, the government can further streamline regulations, accelerate approvals and permits, and leverage digitalization to attract investment and improve operational efficiency.

According to ICRA, the government’s revenue is likely to be revised upwards by Rs 1.2 trillion in the ‘revised budget for FY 2025’ compared to the ‘interim budget estimate’ (IBE), while the revenue and expenditure (revex) target will be relatively smaller, focusing mainly on the rural economy.

The rating agency expects government revenues to increase on the back of higher dividend from the RBI and increase in tax revenues.

According to ICRA, the government is likely to record a fiscal deficit of 4.9-5.0 percent of GDP for FY25, against the IBE of 5.1 percent of GDP, without compromising on the capital expenditure target of Rs 11.1 trillion.

The Parliament’s budget session begins on July 22 and lasts until August 12.

Finance Minister Nirmala Sitharaman will present the budget at a time when the Indian economy is projected to grow robustly at 8.2 per cent in 2023-24, the fastest among major economies in the world, and inflation is set to fall below 5 per cent.

The RBI has stated that the economy is on track for a growth of over 8 percent.

Prime Minister Narendra Modi has already stated that “the next five years will be a decisive fight against poverty”.

Meanwhile, the Supreme Court of Appeal (CII) has called for rationalisation of stamp duty on land and phase-out of cross-subsidy on energy tariffs to “reduce the cost of doing business”.

CII has also proposed that power plants (CPPS) should be brought on par with the power sector in terms of pricing, allocation and transportation of coal.

It is emphasized that the government, as highlighted in the National Logistics Policy, should continue digitalization with the aim of paperless logistics to save significant time and costs.

The Chamber of Commerce has also called on the government to maintain corporate tax rates at current levels to provide tax certainty for businesses.

Efforts have also been made to rationalise the structure of capital gains tax.

(With inputs from IANS)