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Though the numbers mark a moderation from the high growth of over 8 per cent seen in FY24, ,it is in sync with persistent headwinds on account of external factors, FICCI noted in a release.
About 64 per cent of respondents expressed optimism regarding India’s growth prospects ahead of the union budget, while three-fifths projected a FY26 GDP growth rate between 6.5-6.9 per cent, a pre-budget survey by FICCI found.
Over half of the respondents emphasised the importance of reforms to further enhance the ease of doing business.
Concern was expressed regarding the muted demand situation.
About 47 per cent of survey respondents expect the government to meet the fiscal deficit target of 4.9 per cent for FY25 and another 24 per cent said the government could improve and report a lower fiscal deficit number for the current fiscal.
Majority of respondents highlighted the need for sustaining public capital expenditure, with 68 per cent calling for a thrust on capital expenditure (capex) to sustain the growth momentum.
At least a 15 per cent increase in capex allocation for FY26 is being looked forward to by members of Indian industry.
Additionally, over half of the respondents emphasised the importance of reforms to further enhance the ease of doing business. Reforms pertaining to factors of production—particularly related to land acquisition, labour regulations and power supply—remain important, a FICCI release said.
Concern was expressed regarding the muted demand situation. A significant number of industry members called for a review of the direct tax structure. A relook at the slabs and the tax rates is warranted as this could leave more money in the hands of people and spur consumption demand in the economy.
Respondents also called for a strong policy push on simplifying the tax regime, incentivising the development of green technologies, renewables and electric vehicles, and easing compliances through digitisation.
On the taxation front, providing tax certainty, addressing custom duty inversion and rationalisation of tax deducted at source provisions were highlighted as important themes by the participants.
The participants also showed support for an amnesty scheme under customs, with 54 per cent favoring its introduction to enable swift resolution of disputes.
Respondents identified infrastructure, manufacturing (particularly Industry 4.0) and agriculture/rural development as critical areas for policy attention. Nearly 40 per cent stressed the continued need to support micro, small and medium enterprises, given the pivotal role of the sector in driving employment creations.
Export competitiveness also emerged as a priority, with respondents emphasising further improvement in the efficiency of logistics and continuation of interest equalisation schemes to enhance India’s global trade position.
Fibre2Fashion News Desk (DS)
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