The Confederation of Indian Industries (CII) has put forth a compelling plea to Finance Minister Nirmala Sitharaman, urging for a substantial 20% increase in capital expenditure, amounting to Rs 12 lakh crore, in the upcoming budget. Their primary focus is on catalyzing economic growth through well-thought-out investments strategically directed towards key sectors.

CII's Budget Proposals Target Economic Rejuvenation

Beyond the call for heightened capital expenditure, CII advocates for a reevaluation of the eligibility criteria concerning free food schemes. Additionally, they propose the initiation of pilot projects aimed at establishing an urban employment guarantee program similar to NREGA. These initiatives are envisioned to mitigate poverty levels and foster employment opportunities, particularly in urban regions.

Advocacy for Privatization and Tax Restructuring

CII emphasizes the urgency surrounding the privatization of Public Sector Undertakings (PSUs) and the simplification of the Goods and Services Tax (GST) structure, aiming for a more streamlined three-rate system. They also endorse initiatives geared towards affordable housing and set forth a fiscal deficit target of 5.4% for FY25. Furthermore, they advocate for the creation of a dedicated Ministry of Investment to facilitate both domestic and foreign investment inflows.

Bolstering Manufacturing and Employment Generation

In a bid to enhance manufacturing capabilities and amplify employment opportunities, CII suggests the implementation of a National Mission for Advanced Manufacturing. This strategic move intends to harness the potential of cutting-edge technologies and fortify the overall manufacturing landscape. Additionally, they propose the expansion of the Production-Linked Incentive (PLI) scheme to encompass labor-intensive sectors, thereby catalyzing employment growth.

Bank of Baroda Anticipates Emphasis on Rural Development in Budget

Anticipating the budgetary priorities, the Bank of Baroda anticipates a strong emphasis on rural development, particularly amidst challenges posed by a subdued monsoon and Rabi sowing season. While acknowledging the importance of stimulating economic growth, the bank also stresses the significance of fiscal consolidation to maintain a delicate balance between economic revival and fiscal prudence.

The recommendations put forth by CII underscore the critical need for decisive fiscal measures to reignite economic momentum and address pressing challenges confronting India. With all eyes on the forthcoming budget, policymakers face the intricate task of navigating through competing priorities to steer the nation toward a path of sustainable growth and prosperity.