India Inc has sought more measures for ease of doing business and export promotion coupled with simplification of labour laws. Industry chambers also advocated for expansionary fiscal policy to arrest the slowdown.

At a pre-Budget meeting with representatives of Indian industry, export business and services industry called by Finance Minister Nirmala Sitharaman, the industry bodies made this pitch.

Discussions were also held on the regulatory environment impacting private investment, measures for promotion of exports amidst rising protectionist tendencies, Industrial production, logistics, media and entertainment services, and IT and IT-enabled services among others.

CII President Vikram Kirloskar said that the current economic situation calls for an expansionary fiscal policy, with a range of around 0.5-0.75 per cent deviation from the target (3.3 per cent of GDP) of fiscal deficit. The proceeds should be spent on asset creation, especially in rural infrastructure. “In the subsequent years, there can be a glide path to converge with the FRBM trajectory over a 2-3years’ timeframe,” he said.

Further he added that ministers and government officials understood the headwinds in the economy and they have looked at all the possible suggestions including fiscal easing, improving tax collection and demand.

PHD Chamber of Commerce and Industry President DK Aggarwal suggested creating complementarities in reforms such as making land available for industry, time-bound single window clearances, full transmission of policy rate cuts, a dedicated fund for MSMEs, tax reliefs for exports, and review/upgradation of India’s FTAs.

To boost exports, sectors such as agro and food processing, dairy products and sea food, automobiles and automotive components, defence including arms and ammunition, parts and accessories, electrical machinery and equipment, gems and jewellery, oil and gas, pharmaceuticals, sports goods, textile garments, handlooms and handicrafts and IT & ITeS must be given concessional duties to import raw materials, facilitation in production processes etc. Assocham Secretary-General Deepak Sood said several suggestions were made to increase demand in the economy and inject liquidity into the system. FIEO President Ajay Sahai said the exporters’ body highlighted the liquidity concerns of exporters and sought rollout of e-wallet recommended by the GST Council to ease liquidity to exporters.

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