Industry pins hopes on slew of incentives to stimulate growth

Visakhapatnam: The industry by and large expects that the Union Budget will be encouraging to give a fillip to growth at a time when multiple sectors are badly hit by the pandemic. As a reality, this is the time the economy in the country is at its turning point with an established recovery record.

The multiple reforms and initiatives by the government such as PSE policy, privatisation of Air India with many more such inventions and set ambitious disinvestment targets for next year and encourage private investments to boost the economy. More capital investments in infrastructure and manufacturing in all sectors should be encouraged under private partnership, CII Andhra Pradesh chapter chairman DT Raju said.

In an interview, he told Bizz Buzz on Thursday that withdrawals of retrospective taxes and ease of doing business will reboot the economy. Schemes such as production linked incentives should be brought for economic growth and should continue and support the recovery of the mega programmes like Atmanirbhar Bharat. Raju said the budget should be growth oriented so as to rejuvenate demand, private investment and job creation to place the economy firmly into higher growth.

Government should be stable and predictable tax regime to make India a favorable tax destination.Financial support and timely clearance of dues, incentives and subsidies should be ensured to boost the manufacturing sector. He said the government should consider decriminalising and rationalising to help businesses facing many laws like partnership act, bankruptcy code environment and consumer protection labour interest. The industry, he said, is awaiting import duty slabs in such a way that they will enhance global competitiveness.

Some of the suggestions include reduction of long-term capital gains from 20 to 10 per cent, rationalisation of non-productive expenditure investments in agri infrastructure, road and canals and measures to boost manufacturing competitiveness and exports. Logistics related infrastructure investments should be made to reduce cost of business. Revamping of power cost consistency and quality power supply are also some of the suggestions made by the industry.

Raju said the government should take steps to provide sea freight subsidies for exporters, linkage between the ports, rail and road connectivity. "We expect proactive and entrepreneurs' development schemes and education system reforms in this budget."