India Inc. Urges Budget Focus on Tax Reforms

29 Jan 2025 , 10:21 AM

According to a study conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI), India Inc. is still confident about the nation’s progress, with the majority of respondents supporting a sustained emphasis on capital investment and ease of doing business in the next budget.

In order to stimulate demand and increase growth, the majority of the members of the industry association surveyed also supported a reassessment of the direct tax structure in the 2025–2026 budget.

According to FICCI, the budget should reevaluate the tax rates and slabs because doing so might put more money in people’s pockets and increase demand for consumer goods.

More than 150 businesses from a variety of industries participated in the poll, which was carried out between late December 2024 and mid-January this year. It provided a thorough understanding of India Inc.’s attitudes in the face of slowing economic growth.

According to the study, respondents anticipate 6.5–6.9% GDP growth in 2025–2026. Additionally, they advocated for a vigorous policy push to streamline the tax system, encourage the advancement of renewable energy, electric vehicles, and green technologies, and facilitate compliance through digitization.

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