Indian Industry Calls for Tax Cuts to Boost Economy

Industry leaders in India have recently urged the government to focus on stimulating economic demand through significant tax cuts, increased public spending, and job creation, especially in the small business sector. During pre-budget consultations with Finance Minister Nirmala Sitharaman, the Confederation of Indian Industry (CII) president Sanjiv Puri proposed reducing the marginal rate of personal tax for incomes up to Rs 20 lakh to enhance consumer spending and lower excise duty on fuel to curb inflation.

Proposals for Economic Growth and Stability

Puri also suggested a 25% increase in government capital expenditure and alignment of customs duties to integrate India more deeply into the global value chain. Emphasizing the importance of public investment in physical, social, and digital infrastructure, the Federation of Indian Chambers of Commerce & Industry (FICCI) highlighted the need for such measures to sustain growth amidst global uncertainties.

Support for MSMEs and Women in the Workforce

Assocham president Sanjay Nayar stressed the importance of easing credit flow to MSMEs and proposed simplifying the tax mechanism for small businesses and data centers. Additionally, Ficci recommended measures to promote daycare and childcare benefits for women, including tax exemptions, to increase female workforce participation. Sector-specific proposals were also made for defense, PCB, agriculture, health, and education sectors.