Budget 2019 India will be a moment of truth for the newly-elected central government headed by Prime Minister Narendra Modi even as the industry expects an announcement of key measures pertaining to the country’s economy. The Federation of Indian Chambers of Commerce & Industry (FICCI) wants the Modi government to focus on six-point agenda in the upcoming India Budget 2019 on July 5.
These six points of the agenda, which have been suggested by FICCI, are creation of an eco-system that promotes employment, passage of the pending Bills, simplification of Goods and Services Tax (GST), addressing farm distress, lowering of interest rates and announcement of policies. The announcement of policies includes E-pharmacy, Retail, Industry, and E-commerce.
FICCI President Sandip Somany said that the industry body had submitted agenda for growth to the Centre comprising measures to address the challenges and improve the business environment. Somany asserted that since the BJP-led NDA government received a one-sided mandate in the Lok Sabha elections 2019, the industry was expecting bold reform measures to overcome the “existing challenges, including the rural distress and job-creation, and push the economy to a higher growth trajectory.”
Among the other things Somany said that in Budget 2019, the central government should reduce the cost of doing business which he stated was crucial for investment pick-up. It was also required to cut Repo Rate of 100-150 Basis Points, Somany said. The FICCI president said that in India Budget 2019, the central government must focus on “spurring investment”.
Somany claimed that “Cost of doing business” was very high in India. He suggested the central government to reduce the interest rate by at least 100-150 basis points. Apart from this, the FICCI president said in Budget 2019, the corporate tax rate must be cut for all the companies to 25 per cent from the existing 30 per cent. He said the central government must review the Minimum Alternate Tax (MAT) structure terming it “too high”. Further administrative simplification in the GST and other laws to improve the ease of doing business scenario is also required, Somany suggested.