Industry body, Confederation of Indian Industry or CII has strongly urged the government to continue its investment focus and enhance capital expenditure in areas such as infrastructure to promote growth in the economy at a time when consumption demand has not picked up adequately.
"While the economy is showing strong signs of recovery, this would be the right time to focus on future challenges such as developing a competitive manufacturing sector and climate change," said TV Narendran, President, CII. These are part of the suggestion made to the government for the forthcoming Union Budget 2022-23.
On infrastructure, CII has urged the government to consider replacing bank guarantees with surety bonds and to also develop the municipal bond market so that urban local bodies can raise funds for investing in infrastructure.
CII suggestions have also stressed on the necessity of policy reforms for boosting employment and sustainability, to address the imperatives of development. On employment, the CII has suggested incentivizing employment-intensive sectors such as tourism.
The industry body has further suggest that in order to attract domestic investments into start-ups, government should consider reducing the percentage of Long-Term capital gains from 20% to 10% and abolish the surcharge on investments made into start-ups by Investment vehicles.
CII has also advocated ensuring a stable and predictable tax regime to help attract private investments, both domestic and foreign, it noted in a statement.
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