Union Budget 2025 Updates: Industry bodies demand tax cuts, capex boost
Confederation of Indian Industries (CII) President Sanjiv Puri has recommended reduction in the marginal tax rate on incomes up to ₹20 lakh to stimulate demand. During his pre-budget consultations with Finance Minister Nirmala Sitharaman, Puri also suggested lowering the excise duty on fuel to help curb inflationary pressures.
There have been growing calls for the government’s special focus on generating demand through income tax cuts, increased public spending, and job creation in the upcoming budget. These measures are expected to boost the economy and address issues of inflation and sluggish demand.
Boosting Public Capex and Customs Duty Alignment
The CII President further proposed a 25 percent increase in government capital expenditure (capex) to drive growth and aligning customs duties to integrate India into the global value chain. He recommended the need for measures to improve credit access for MSMEs and the development of rural industrial parks near industrial hubs. The need for a government push on public capex was also backed by FICCI which also stressed on continued investment in infrastructure development to maintain growth momentum.
Assocham’s Focus on MSMEs and Credit Flow
The Associated Chambers of Commerce and Industry of India (Assocham) President Sanjay Nayar highlighted the challenges faced by MSMEs, particularly regarding access to credit. Nayar urged for the removal of collateral requirements and called for greater focus on skilling and more business-friendly presumptive tax mechanisms for small businesses and data centres.
The key industry bodies, including FICCI, urged for introduction of new measures to support women’s workforce participation by offering tax exemptions for families with children under a certain age, promoting daycare and childcare benefits for women in the workplace.
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