Industry Wishlist: FTAs To Simple Taxes And Tourism Push — CII's Sanjiv Puri On Path Ahead
The Indian economy is in good shape with a solid GDP print for the year even as global growth is not buoyant, Puri said.
Free trade agreements, simplification of taxes and infrastructure status to the hospitality sector are some of the items in the wishlist India Inc. has for the new government to cement the country's economic growth.
"FTAs are going to be important for integrating into global supply chains. There have been progress, and some are under discussion," Confederation of Indian Industry President Sanjiv Puri told NDTV Profit. "The industry will welcome signing of these new FTAs."
The Indian economy is in good shape with a solid GDP print for the year even as global growth is not buoyant, Puri said. He credited the situation as a result of good policy interventions done for several years. "India is on a strong wicket. Private capex is looking up."
Tax Reforms
The CII has suggested rationalisation of GST rates with three slabs and inclusion of sectors like petroleum and real estate that are presently out of its ambit. It has also called for rationalisation of capital gains tax, by bringing about consistency in tax rates and holding period for different types of instruments.
"We are not seeking a reduction in tax rates, it's more around simplification for ease of doing business," Puri said.
Tourism Focus
Tourism and hospitality should be given infrastructure status as it leads to a multiplier effect on the economy, creating micro enterprises and self-employment, he said. "We are seeing buoyancy in domestic tourism. Better connectivity will open more opportunities in this space."
He highlighted the need to draw more foreign tourists into India and lauded the G20 events held across the country last year as a good way of promotion.
The industry lobby chief also said investments from public, private and multilateral institutions will be required to fund green transition projects.
Rural Recovery
Puri also emphasised on the need to scale-up private capex in the rural economy. On the underlying distress, the ITC Ltd. Chairman and Managing Director said corporate commentary during the recent earnings season suggests of green shoots in the rural economy and forecast of better monsoon will also complement recovery in consumption.
A cooling of food inflation will also lead to easing of interest rates in the second half of the year.
Watch the full conversation here:
