Industry bodies seek I-T relief, capex focus

NEW DELHI: Corporate chiefs on Thursday pitched for retaining the focus on capital expenditure, while easing rules for MSMEs and boosting consumption. Measures to support higher demand was the other key theme during FM Nirmala Sitharaman’s meeting with industry bodies.
“We welcome govt’s emphasis on fiscal consolidation and believe it would proceed with a strategic focus on increasing capital expenditure.By prioritising investments in infrastructure, education, healthcare and other critical sectors, govt can stimulate economic growth, while maintaining fiscal discipline,” said Assocham president Sanjay Nayar.
To increase disposable income, the industry chamber also proposed an increase in the basic income tax exemption limit from Rs 3 lakh to Rs 5 lakh, and also doubling the standard deduction to Rs 1 lakh. Along with Assocham, Ficci also demanded simplification of the tax regime and a focus on MSMEs, while supporting the agriculture sector, including making them climate resilient.
“We touched upon broader issues (like) primarily what can be done to maintain India’s growth momentum and impart further impetus to it. So, broadly private sector capex is picking up and numbers are very encouraging in this regard,” former Ficci president Subhrakant Panda said after the meeting. He also called for retaining the thrust on infrastructure development, taking further measures to rein in food inflation and prioritising innovation and research and development. The themes are similar to the pre-budget discussions with economists on Wednesday.
CII president Sanjiv Puri sought relief in income tax at the lower end of income slabs, streamlining of employment inked incentive schemes like Production Linked Incentive (PLI) and promoting ease of doing business.