Economic survey indicates reformative Budget: India Inc

Economic survey indicates reformative Budget: India Inc

PTIUpdated: Thursday, May 30, 2019, 09:34 AM IST
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6.75-7.5 per cent GDP growth estimate for 2017-18 too can be achieved, say industry captains

New Delhi : India Inc on Tuesday said the Economic Survey has correctly assessed challenges facing the country on Tuesday  which is indicative of a bold and reformative Budget to be presented on Wednesday.

Besides, industry captains feel that the 6.75-7.5 per cent GDP growth estimate for 2017-18 too can be achieved. “The Survey, points to a likely bold and reformative Budget, which will have a strong focus on infrastructure, employment generation and easing business conditions. The issue of NPAs is most likely to be addressed coherently, along with taking stock of the PPP logjams. “The survey scores on recognising the economy’s shortcomings, prescribing the required action and setting an optimistic and expectant tone for Wednesday’s budget,” KPMG India CEO Richard Rekhy said. The industry bodies also pitched for lowering personal as well as corporate income tax to boost demand in the Budget, reports PTI.

“The Survey has rightly picked up the potential risks to the global economy and its impact on India in the form of higher oil prices, trade tensions from sharp currency movements and geo-political factors. An upsurge in protectionism that could affect India’s exports, is surely a matter of concern,” Assocham President Sunil Kanoria said.

CII described the 2016-17 report card of the state of the economy tabled by Finance Minister Arun Jaitley in Parliament as a forward-looking, comprehensive and objective analysis.

“We are hopeful that the Budget to be presented on Wednesday would deal with the aspects of creating demand, especially through direct tax interventions on the personal income tax and corporate taxation side,” CII Director General Chandrajit Banerjee said.

“To reap the long-term benefits of demonetisation, there is a need to have follow-up actions such as providing a boost to demand, lowering of tax rates, widening of tax base and reforming the tax administration. We hope that the Union Budget to be presented on Wednesday will include measures in these areas,” Ficci President Pankaj Patel said. “We are hopeful that the Budget to be presented tomorrow would deal with the aspects of creating demand, especially through direct tax interventions on the personal income tax and corporate taxation side,” Banerjee said. India’s economic growth has been pegged at 6.5 per cent for the current fiscal, down from 7.6 per cent recorded in the last financial year, but is expected to rebound in the range of 6.75-7.5 per cent in 2017-18, according to the Economic Survey.

IANS adds: Another major business chamber, Assocham elaborated that the Economic Survey “has rightly” highlighted the potential risks of higher oil prices, trade tensions from sharp currency movements and geo-political factors.

 “An upsurge in protectionism that could affect India’s exports is surely a matter of concern,” Assocham President Sunil Kanoria said in a statement.

 “As Economic Survey provides road map for the implementation of GST, it will create a common market in India, improve tax compliance and governance, boost investment and growth and indicate that the double digit growth trajectory is not far away,” said Gopal Jiwarajka, President of PHD Chamber of Commerce and Industry.  “We appreciate government’s initiatives to facilitate investment and ease of doing business in the country.”

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