The Union Budget of 2024-25 allocated a record Rs11.11 lakh crore towards capex, prioritizing productive spending over revenue expenditure.
Reforms in sectors, particularly land, labour, and power, are critical for long-term growth. FICCI proposes creating inter-state institutional platforms similar to the GST Council to facilitate consensus-building and advance reforms in these areas.
The government has made strides in tax simplification, to further ease compliance, FICCI recommends rationalizing multiple TDS/TCS rates into a simpler tiered structure and eliminating TDS/TCS on GST-related transactions.
Additionally, introducing an independent dispute resolution forum for tax matters could build taxpayer confidence, reduce litigation, and expedite resolution processes.
With India committed to achieving net-zero emissions by 2070, FICCI emphasizes the need for policies that promote green transitions.
FICCI highlights the importance of enhancing women’s participation in the workforce by providing tax exemptions for daycare expenses and utilizing CSR funds to establish dormitories for women in manufacturing hubs.
Creating a statutory body to certify and monitor day-care centers can further support women’s economic engagement.
To strengthen self-reliance in the defence sector, FICCI proposes prioritizing domestic production, investing in advanced technologies like AI and quantum computing, and developing weaponized drone swarms. Additionally, establishing a Defence Export Promotion Agency to boost India’s position in global defence markets.
To enhance agricultural productivity, FICCI suggests launching an agricultural yields mission targeting the bottom 100 districts and developing a national program to train 3 million farm technicians over the next five years.
Encouraging private sector involvement in horticulture clusters and advancing post-harvest technologies can also significantly improve farm incomes.
To reduce dependency on imports, FICCI recommends developing a roadmap for local manufacturing of components to bolster India’s electronics manufacturing ecosystem.
FICCI proposes a PM-led national campaign to promote foundational literacy and numeracy. Offering e-Rupi vouchers to parents for school fees and fostering competition among educational institutions can improve outcomes. These initiatives aim to enhance early years’ education across the country.
India’s public healthcare expenditure, though improving, remains significantly below the OECD and BRICS averages. FICCI recommends raising public health spending to 2.5 per cent of GDP by 2025, incentivizing preventive healthcare, and enhancing tax benefits for health insurance.
Recognizing hospitals as industrial undertakings and increasing depreciation rates for diagnostic infrastructure and lifesaving equipment can further strengthen healthcare delivery. (ANI)
