Nearly 60 per cent said the push towards digitalisation has been beneficial. (file)
New Delhi:
A survey of Indian business leaders shows that a majority of them, nearly 60 per cent, are optimistic about India’s growth above 6.5 per cent during 2023-24.
The survey said that Chief Experience Officers (CXOs) business leaders in India are confident that Budget 2023-24 will help boost economic growth across sectors and industries amid a possible global recession and geopolitical instability.
According to the Deloitte survey, among industry sectors, chemicals (72 percent), capital goods (70 percent), and energy (67 percent) expressed confidence in higher growth, and felt that government initiatives, such as Atmanirbhar Bharat, would generate Linked Incentives (PLIs), and accommodative monetary policies by the Reserve Bank of India to reduce retail inflation and retain critical foreign exchange, increased spending on infrastructure, and research and innovation, will drive this momentum.
Business leaders responding to a pre-Budget survey by Deloitte Touche Tohmatsu India (DTTILLP) said they believe the budget will define the “Amrit Kaal” agenda for India and help the economy remain resilient and at a healthy pace. Will give fuel to continue growth. balancing concerns around inflation and global risks.
This growth will require the pace of significant capital expenditure, infrastructure development and a boost to infrastructure financing through private participation. Sixty percent of the respondents suggested raising funds through Government of India bonds, according to the survey.
The Deloitte statement said this proportion increased by 12 percent from last year’s survey. It said, “Fifty-eight percent of respondents suggested that public-private partnerships (PPPs) should be encouraged to bridge the funding gap and address issues that inhibit private participation, while introducing innovative initiatives such as credit guarantee enhancements.” bring the structure.”
Due to global uncertainties and economic slowdown across geographies, tax-related changes are expected to boost industry growth and are the most sought-after measures from the upcoming Union Budget, the survey said.
Most respondents viewed trade treaties as a means to enhance investment flows and exchange emerging technologies to strengthen their role in global value chains (GVCs). Inclusion of Micro, Small and Medium Enterprises (MSMEs) in GVCs will stabilize industrial growth and improve trade flow and strengthen their role in GVCs.
The survey said that around 60 per cent respondents believe that the recent push towards digitization has been beneficial for the sector, with 70 per cent respondents indicating that the GST portal is the most effective digital effort by the government.
Apart from easing tax compliance, 45 per cent respondents expect the government to reduce tax litigation, while 44 per cent expect to get clarification on tax laws and provisions such as tax deduction at source (TDS).
Additionally, the industry is looking forward to simplification of the capital gains tax structure and removal of ambiguity in the interpretation of the tax, which will lead to easier compliance. According to the survey, “These will not only boost investment and economic growth, but also provide long-term relief to taxpayers and the tax administration.”
Sanjay Kumar, partner, Deloitte Touche Tohmatsu India, said, “Despite global uncertainties, the Indian economy has remained resilient and is on track to grow at 7 per cent. With a vision to achieve a $5-trillion economy, the government has A focused approach has been adopted to facilitate ease of doing business and enhance industrial growth, generate employment and increase investment.”
He said that the Union Budget 2023-24 has a lot of expectations from the industry to continue this momentum and lead the country towards economic prosperity.
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