About 60 per cent Indian business leaders predict that India would develop faster than 6.5 per cent in 2023-24, according to research.
Despite a possible global slump and geopolitical uncertainty, India’s chief experience officers (CXOs) are confident that Budget 2023-24 would help accelerate economic development across sectors and industries, according to the survey.
Chemicals (72 per cent), capital goods (70 per cent), and energy (67 per cent) expressed high confidence in growth, citing government initiatives such as Atmanirbhar Bharat, production-linked incentive (PLI), and favourable monetary policies by the Reserve Bank of India for moderating retail inflation and maintaining significant forex reserves, increased spending on infrastructure, and R&D.
According to business executives who responded to a pre-Budget poll conducted by Deloitte Touche Tohmatsu India (DT TILLP), the Budget will define India’s “Amrit Kaal” strategy and fuel the economy to remain robust and develop at a healthy pace, while balancing concerns about inflation and global risks.
The rate of capital investment, the development of infrastructure, and the need to boost infrastructure funding through private partnerships will be key to this expansion. According to the report, 60 per cent of respondents suggested using Indian government bonds to secure finance.
This proportion grew by 12 per cent over the previous year’s poll, according to a Deloitte statement. As per the research, 58 per cent of respondents feel that public-private partnerships (PPPs) should be pushed in order to bridge the financial gap and remove barriers to private participation, while also introducing new structures such as credit guarantee enhancement.
Tax-related adjustments are expected to assist industry growth and are the most sought-after as global uncertainties and a slowing economy loom across geographies. Measures from the 2019 Union Budget were also included in the study.
The great majority of respondents saw trade agreements as a means of increasing investment flows and exchanging emerging technologies in order to strengthen their involvement in global value chains (GVCs). Inclusion of micro, small, and medium-sized enterprises (MSMEs) in GVCs will aid in maintaining industrial growth, increasing trade flows, and strengthening MSMEs’ position in GVCs.
According to the research, more than 60 per cent of respondents believe the present push toward digitisation has benefited the business, with 70 per cent selecting the GST website as the government’s most effective digital endeavour.
In addition to making tax compliance simpler, 45 per cent of respondents wanted the government to reduce tax litigation, and 44 per cent expected the government to explain tax rules and regulations such as tax deducted at source (TDS).
Furthermore, the industry anticipated a simplification of the capital gains tax system and a reduction in tax interpretation challenges, making compliance easier. According to Survey, these would not only boost investment and economic growth, but will also benefit taxpayers and the tax administration in the long run.
Despite global uncertainties, the Indian economy has remained solid, according to Sanjay Kumar, Partner at Deloitte Touche Tohmatsu India, and is well on its way to a 7 per cent growth rate. With the objective of reaching a USD 5-trillion economy, the government has implemented a focused plan to boost industrial growth, create employment, and promote investment.
