Despite the third Covid wave, more than 75 per cent business leaders are positive about India’s economic growth and expansion ahead of the Union Budget 2022-23, according to the survey by Deloitte Touche Tohmatsu India LLP (DTTILLP). The number was 68 per cent last year.
Compared to 58 per cent last year, about 91 per cent respondents believe the ‘Atmanirbhar Bharat’ initiative, coupled with monetary policy actions by Reserve Bank of India, including extending EMI reliefs, and reducing repo and reverse repo rates, contributed to bringing the economy back on track. They expect the Union Budget to build on this momentum.
About 55% business leaders believe providing extra tax incentives to long-term investors for infrastructure investment can help promote growth in the country. A total of 45% respondents believe that the budget should focus on announcing incentives for increased R&D spending.
This would be beneficial for sectors such as life sciences, automobile, capital goods, technology, and telecommunication.
The survey results show industry perception towards group taxation has changed significantly, as 70 per cent respondents now feel that this idea should be implemented within the next year. At least 48 per cent feel that boosting demand by adding employment and lowering personal taxes may provide the needed push to industries and expect the Budget to address this.
Enhancing export competitiveness, putting in place competitive import tariffs, and reducing administrative inefficiencies are some other expectations.
Nearly 35 per cent leaders want the budget to address the issue of extending higher credit support to MSMEs, and an accelerated divestment and asset monetisation programme.
ALSO READ | Union Budget 2022: From Colonial India to 1991 Reforms, A Look at the Journey of India’s Financial Plan
About 56 per cent respondents also believe that the PLI scheme was a game-changer especially for the telecommunication and technology industry, followed by the electronics, and life sciences and healthcare industries. More than 60% business leaders feel the PLI scheme will attract investors and increase manufacturing and exports, which will boost the growth of different sectors and the economy.
About 59 per cent respondents believe that India provides a favourable atmosphere to run a business. Encouraging digitalisation, simplifying tax regimes, and improving land and labour laws would help enhance the ease of doing business in India.
The global pandemic has accelerated the development of many large-scale digital innovations at an unprecedented speed. More than half of the respondents agree that the recent technological push has been beneficial.
Sanjay Kumar, Partner, Deloitte Touche Tohmatsu India LLP, said, “The economy has witnessed a steady recovery during FY’22. The Indian economy will continue to witness the growth momentum if the government is able to sustain the efforts on implementation of reforms such as asset monetisation for the infrastructure growth, and PLI schemes. Moreover, most of the business leaders anticipate that the increasing start-up activity, coupled with the government’s stimulus packages and policies, will push the ease of doing business in India, resulting in a quick economic revival.”
Read all the Latest News, Breaking News and Coronavirus News here.
Source: News18