Trade body PHDCCI expects the Union Budget 2024-25 to bolster the manufacturing sector, support consumption demand and provide relief to middle-income group with rationalisation of tax slabs. Dr Ranjeet Mehta, Executive Director of the PHD Chamber of Commerce and Industry, told Krishi Jagran that there was a need to further strengthen India’s journey towards 'Viksit Bharat' under the leadership of Prime Minister Narendra Modi.
The Chamber suggested 10 reforms in this direction. The key suggestions included enhancing the manufacturing share in GDP to 25 per cent by 2030, expanding the PLI scheme beyond the 14 sectors with addition of more labour intensive sectors, and changing the classification norms of MSMEs for NPAs from the 90 days limit to 180 days.
It also favoured rationalisation of direct taxes for the middle class, more focus on tier-2 and tier-3 cities with state-of-the-art infrastructure, and smart villages with adequate facilitation of public utilities.
Dr Mehta advocated status quo on the corporate tax rate at 22 per cent for existing companies and 15 per cent for new manufacturing companies incorporated after October 1, 2019, to enhance the manufacturing share in GDP.
Strengthening university-industry linkages to enhance R&D activities in the country, and reducing costs of doing business including costs of capital, costs of power, costs of logistics, costs of land and costs of compliances were among the other suggestions.
The Chamber was in favour of implementation of the four labour codes across the states to enhance the competitiveness of the industry, besides strengthening supply chains and addressing the shortages in key food items to mitigate inflationary pressures.
Dr Mehta said the middle class must be spared from the 30 per cent tax rate and this rate must be applicable only to those with taxable income above Rs. 40 lakh. This will support consumption demand in the country, he said. The ED said that a high-level PHDCCI delegation recently conveyed its views and expectations of the Union Budget during an interaction with Finance Minister Nirmala Sitharaman.
The delegation comprised Sanjeev Agrawal, President, Saket Dalmia, Immediate Former President, Dr Ranjeet Mehta, Executive Director, S P Sharma, Chief Economist and Deputy Secretary General, and Nanda Mishra, Joint Secretary, PHDCCI.
Finance Minister Sitharaman will present the Union Budget on July 23, 2024. On the opening day of the session on Monday, she will table the Economic Survey.
