India’s economy is likely to grow in the range of 6.4 to 6.7 per cent in the financial year 2026-27, supported by strong domestic demand, said CII President Rajiv Memani on Thursday while addressing a press conference in New Delhi. As per a report by ANI, Memani said that while India remains on a positive growth path, global uncertainties could pose challenges.
He said that India has shown resilience and a better growth trajectory compared to other major economies such as China, the United Kingdom (UK), the US, and the Euro area.
CII recommends trimming tax slabs and reducing credit blockages
According to the ANI report, CII also presented next-generation reforms at the conference to improve the ease of doing business in the country. These include changes in taxation, reduction in manufacturing costs, and reforms in fiscal policy, environmental compliance, and logistics.
On Goods and Services Tax (GST), CII recommended reducing the current five tax slabs to three. It proposed a 5 per cent rate for essential items, 28 per cent for luxury and sin goods, and a uniform slab of 12–18 per cent for other goods.
CII also called for simplifying the Input Tax Credit (ITC) system to remove credit blockages. It urged coordination of audits across states and suggested setting up a National Appellate Authority to reduce litigation. The body also pushed for including petroleum, electricity, and real estate under the GST regime.
CII urges direct tax reforms to cut litigation and delays
ANI further reported that CII asked the government to implement the Income Tax Bill to simplify procedures and lower litigation. It recommended the use of Advance Pricing Agreements and Dispute Resolution Schemes to avoid delays in legal proceedings.
CII proposed a three-tier structure for customs duty — 0–2.5 per cent for raw materials, 2.5–5 per cent for intermediate goods, and 5–7 per cent for final products. This, it said, would streamline imports and boost competitiveness.
CII proposes land zoning reforms to reduce manufacturing costs
To lower manufacturing costs, CII suggested reducing over 50 land zoning categories to 5–7 to allow more flexible land use, ANI reported. It also called for easing urban restrictions and unlocking land held by public sector units (PSUs).
In the power sector, CII recommended tariff rationalisation, digitisation of electricity distribution, and improved grid transmission. To bring down logistics costs, the industry body advised rationalising tariffs and developing railway freight corridors connected to ports.
CII outlines strategic roadmap for India’s critical minerals sector
In the same conference, CII also laid out a roadmap to strengthen India’s critical minerals sector. According to ANI, it urged the government to allow automatic mining rights to players granted an Exploration Licence.
“Environmental regulations should be streamlined and enhanced through the adoption of technology. CII recommends implementing a unified compliance framework that consolidates all state and central environmental clearances,” said Memani.
To improve transparency, CII suggested creating a National Critical Minerals Data Repository. It also stressed the need for government support through Viability Gap Funding (VGF) to attract private players to the sector.
CII asked the government to include dedicated chapters on critical minerals in Free Trade Agreements (FTAs) with countries such as Australia, Peru, Chile, Indonesia, and Oman.
Green hydrogen and renewable hubs part of CII’s climate plan
To help India meet its energy transition targets, CII proposed drawing up sector-specific strategies and building green hydrogen and renewable energy hubs. “CII would also be launching a Mission on Energy Transition, to encourage industry to shift to low-carbon alternatives,” Memani added.
CII flags critical mineral shortage in auto sector
However, he flagged concerns about critical mineral shortages, especially in the auto sector. “Auto is a big concern. In some other sectors also there are concerns. In the auto, the concerns are more serious than what’s come out till now. In fact, some of the most conservative companies are already starting to give some guidance on lowering their production levels going forward,” he said.