Confederation of Indian Industry (CII)’s new president Sanjeev Puri believes that in view of the high level of inflation, there is a need to consider income tax relief for people in the lowest slab in the upcoming full budget of 2024-25. Puri also suggested creating an institutional platform to build consensus between the Center and the states to successfully carry forward all the reforms related to land, labor, power and agriculture. When asked about the expectations from the full budget for the financial year 2024-25, Puri said, “Broadly, I would say at this time that public capital expenditure, following the fiscal progress path, framework for investment in social infrastructure, green fund and more investment in the rural sector are the broad principles.
Coalition government will not affect growth
The industry body said it does not think the compulsions of coalition politics will hinder reforms in the third term of Prime Minister Narendra Modi. Instead, it believes the performance of the Indian economy and the success of policies in the last two terms will lay the ground for accelerating the process.
Inflation will come down due to good monsoon
Puri said that CII estimates that due to good monsoon, inflation based on Consumer Price Index will be around 4.5 percent this year. When asked about tax, he said that our suggestion is that the process of simplification should continue on this front. He said that there are some suggestions regarding capital gains. “It is different on different mediums. Can it be harmonized.” Wholesale inflation has increased for the third consecutive month to 2.61 percent in May due to increase in prices of food items, especially vegetables and manufactured goods. Wholesale Price Index (WPI) based inflation was at 1.26 percent in the previous month. It was 3.61 percent below zero in May 2023.
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