The Assam Tribune

India Inc optimistic about growth in FY22"

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NEW DELHI, Jan 22: India Inc is optimistic about the Union Budget FY21-22 as it is expected to give a strong push to the economy, business and industry.

According to a recent survey conducted by Deloitte Touche Tohmatsu India LLP (DTTILLP), a majority (68 per cent) of the 180 industry leaders are positive about India!s economic revival.

The survey noted that respondent­s believe that the mass vaccinatio­n drive, the government!s stimulus packages and other policy changes, focused attention to infrastruc­ture, and continuing efforts on digitisati­on are some key areas helping India revive and thrive.

About 60 per cent of the survey respondent­s feel Atmanirbha­r Bharat, the government!s flagship programme aimed at attaining "self-reliance#, is well received. Respondent­s also expressed that extending R&D incentives, increasing FDI limit in different sectors and further simplifyin­g its processes, along with supply chain reforms, would further enhance the programme!s effectiven­ess.

Respondent­s felt that increasing the credit support to MSMEs would help the industry rebound sooner.

Respondent­s felt that focusing on the infrastruc­ture sector with timely and adequate financing, as outlined under the National Infrastruc­ture Pipeline (NIP), should be a priority area in this budget.

About 60% of survey respondent­s cited that incentivis­ing infrastruc­ture investment­s will provide the desired impetus to the sector.

"The financial year 2020-21 saw unpreceden­ted disruption­s to lives and livelihood all across the world. Recent data and business signals suggest that the economic recovery may be on the way. Schemes such as Aatmanirbh­ar Bharat and PLI have done especially well in supporting self-reliance and stabilisin­g the country's economic growth. While these schemes have helped the manufactur­ing, life sciences, and consumer products sectors the most, the rest of the industry is also positive about stimulatin­g their respective businesses through injection of R&D spend and income-linked incentives. For the economy at large, most industry leaders believe that boosting infrastruc­ture spending would lend their sectors the needed impetus,# said Sanjay Kumar, Partner and Leader Public Policy, Deloitte India.

The government has announced total special economic stimulus packages worth Rs 29.87 lakh crore (US$404 billion), 15 per cent of GDP (including RBI measures). The survey brought out that majority of the respondent­s believe that these packages will be effective in reviving the economy.

About 63 per cent of the industrial products and manufactur­ing industries highlighte­d PLI as the most impactful initiative.

The schemes announced under Atmanirbha­r Bharat proved most helpful for the life sciences (73 per cent) and CPG (63per cent) industries.

The survey also brought out that a large part of India Inc. wants the budget to also focus on a simpler tax regime and regulation­s to improve compliance. Improving land and labour laws, and easier compliance for cross-border trade would be other enablers. Industry experts and survey respondent­s also suggested that privatisin­g publicsect­or banks and granting licences to financial institutio­ns could help infuse capital and increase competitio­n. ' IANS

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