New Delhi: Enhancing private investment is one of the recommendations made by the PHD Chamber of Commerce and Industry (PHDCCI) to the government as the Union Budget 2023-24 is presented at a critical juncture of geopolitical uncertainties, high inflation and slow world economic growth. Used to be. In the list of recommendations, the industry body highlighted bringing up demand or consumption, ease of doing business, reduction in cost of doing business, deployment of latest infrastructure, strengthening MSMEs, supporting tourism sector, agriculture and rural sector Is. Ensuring frontline and critical health infrastructure and focus on education and skill development.
Enhancing the momentum in private investment, PHDCCI said fuel consumption, capacity utilization, implementing Ease of Doing Business at factory level, rationalizing cost of doing business, rationalizing taxation, modern infrastructure, sector There is a need to increase income. Agriculture sector, inclusive health infrastructure, quality education and employment generation in the economy.
PHDCCI said that demand creation will have a multiplier effect on increasing production potential, capacity expansion, private investment and employment generation. It said that this would set in motion the overall virtuous cycle of growth and development of the Indian economy. The industry body said that there is a need to extend the benefits of tax exemption for consumption expenditure to increase consumption in the economy. Tax exemption of only Rs 2 lakh is being given for the last several years on the purchase of own residential house.
The industry body said it should be extended to cover a wider range of consumption expenditure such as purchase of more than one house, purchase of a car, among other durables. It recommended increasing the consumption expenditure exemption to Rs 5 lakh per annum. This will not only increase the aggregate demand in the economy but also attract private investment, increase the capacity utilization of firms and generate huge employment opportunities in the economy. Reduction in the cost of doing business and a level playing field in the country will enhance the competitiveness. For our industry and exporters, reduce imports of those items where India has domestic capabilities.
PHDCCI said the government should focus on reducing the cost of doing business including cost of capital, cost of power, cost of logistics, cost of land and availability of land and cost of labour, availability of skilled labor and cost of compliance . According to the state PHDCCI, state-of-the-art infrastructure is one of the important sectors that drives the overall growth and development of the Indian economy. The increased spending on infrastructure will have a multiplier effect to rejuvenate aggregate demand in the economy.
“Undoubtedly, strong growth of infrastructure is a key component for realizing the vision of Atmanirbhar Bharat and becoming a developed economy by 2047,” the industry body said. percent of GDP to acquire state-of-the-art infrastructure and become a developed economy by 2047. The Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the years.
The plethora of reforms for the MSME sector and the amendment in the new definition of MSMEs will increase the production potential limits of MSMEs. PHDCCI said that the current banking norms result in higher primary security and collateral security being demanded by the banks for MSMEs which hinders their growth. possibilities. It added that the focus of the government should be on hassle-free disbursement of loans at cheaper rates of interest to businesses than increased liquidity for MSMEs. Industry body recommended reduction in tax on MSME firms, which are proprietorship or partnership.
The tourism sector is a major engine of economic growth and an important source of foreign exchange earnings in many countries, including India. PHDCCI said that development of tourism infrastructure is of paramount importance and should be given priority to provide better experience, facilities, safety to tourists and this will lead to increase in employment generation in the country and facilitate growth of MSMEs. There is a need for further improvement in rural infrastructure logistics and cold chain as this will help in increasing the level of food processing industry and rural entrepreneurship, according to PHDCCI.
It also said that increased public investment in agricultural infrastructure would attract private investment in cold storage, warehousing and supply chain of agricultural products to reduce food wastage and deliver them to urban citizens at moderate rates. It will also increase the returns for the farmers. According to the industry body, it is necessary that an integrated holistic approach of the agriculture value chain is taken towards providing the necessary impetus to agricultural growth. “This requires a joint participatory approach from all concerned stakeholders including farmers, input sellers, traders, processors and the government. The Union Budget will provide tremendous thrust and closely monitor through a comprehensive policy framework and appropriate financial benefits can be very effective.” Monitor action plans,” it said.
The PHDCCI said the pandemic has drawn special attention to the country’s health infrastructure, highlighting the critical state of the public health sector and the need for increased government spending on public health. It has recommended increasing investment in the sector for highly skilled manpower. Resources ranging from doctors to other medical support staff such as nurses, lab technicians, pharmacists, etc., who are super-trained for unforeseen events like the COVID-19 pandemic. PHDCCI said that India’s labor force is also characterized by a high proportion of employment. agriculture and the informal sector, with nearly half of its workforce classified as the working poor.
Speaking on the occasion, the industry body said that there was an urgent need to create a highly skilled talent base and ensure the formation of a strong human capital base ready to serve the nation and engage with the world from a position of strength and valour.