India Inc's business sentiments are drawing closer to pre-pandemic levels, hinting at a more robust performance in the next quarter, according to a survey by Grant Thornton Bharat.
A survey, with over 3,700 respondents across digital platforms, found that transparent taxation has been one of the most significant initiatives of the government followed by the production-linked incentives (PLI) scheme, equalisation levy and new labour codes.
"From being cautious to being optimistic, India Inc's business sentiments are drawing closer to pre-pandemic levels, hinting on a more robust performance in the next quarter," Grant Thornton Bharat said in a statement.
While half the survey respondents feel the pandemic has had a severe impact on the economy, 60 per cent of them said a reduction in tax and compliances can help revive businesses. Government initiatives have also played a significant role in helping the economy recover.
Six out of 10 respondents feel that reducing tax and compliance burden will help revive businesses, post the second wave. An uptick in direct spending, followed by additional liquidity infusion and increased FDI flows, respectively, are also some of the other relief packages that respondents feel can help boost cross-border and domestic trade.
The survey hinted at the rising global and domestic optimism related to revenues in 2021.
Grant Thornton Bharat National Managing Partner (Tax) Vikas Vasal said, "The reduction in the corporate tax rates, attempts to reduce litigation through dispute resolution schemes, bringing in more transparency through various tax administrative reforms, boost to the MSMEs through various policy initiatives, are all yielding results and adding to the positive business outlook in India."