New Delhi [India]: Ahead of the Union Budget on February 1, a “quick survey” conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI) revealed that 64% of industrialists are optimistic about India’s growth trajectory.
The survey found that nearly 60% of respondents expect a GDP growth rate between 6.5% and 6.9% for 2025-26. While this reflects a moderation from the 8% growth witnessed in 2023-24, the results align with the challenges posed by persistent global economic headwinds.
“The government’s commitment to fiscal consolidation has positioned us well,” the survey stated. Approximately 47% of participants believe the government will meet the fiscal deficit target of 4.9% for FY 2024-25, while 24% expect an even lower deficit.
Conducted between late December 2024 and mid-January 2025, the survey captured inputs from over 150 companies across various sectors, providing insights into corporate expectations amidst moderating growth.
Key Survey Findings:
- Public Capital Expenditure:
A majority (68%) of respondents stressed the need for sustained public capital expenditure, with at least a 15% increase in the capex allocation for FY 2025-26 anticipated to maintain growth momentum. - Ease of Doing Business and Reforms:
More than half of the respondents called for reforms targeting land acquisition, labor regulations, and power supply to further enhance business ease. - Taxation Reforms:
Many respondents urged a review of the direct tax structure, including changes to slabs and rates, to boost consumption by increasing disposable incomes. Simplifying the tax regime, incentivizing green technologies, and reducing compliance burdens through digitization were also highlighted. - MSME Support:
With MSMEs playing a pivotal role in employment generation, nearly 40% of respondents called for measures to streamline credit access, foster technology adoption, and promote sustainability in this sector. - Export Competitiveness:
Respondents emphasized improving logistics efficiency and continuing interest equalization schemes to strengthen India’s global trade position. - Sectoral Focus:
Infrastructure, manufacturing (particularly Industry 4.0), and agriculture/rural development emerged as key areas for policy attention.
Survey participants also proposed introducing an amnesty scheme under customs for faster dispute resolution, addressing tax uncertainties, and rationalizing TDS provisions.
Long-Term Vision:
The survey reflected a balanced approach, advocating for reforms to enhance productivity while addressing global challenges like geopolitical uncertainties, inflation, and supply chain disruptions.
Respondents noted that the Union Budget 2025-26, as the first full budget of the new government, offers an opportunity to solidify India’s position as a leading global investment destination while laying a robust foundation for long-term economic growth.