New Delhi: As Finance Minister Nirmala Sitharaman prepares to present her sixth straight budget on Thursday, eminent industry leaders said the government should keep its focus on infrastructure, which needs a leg-up.
Ahead of the presentation of the Union Interim Budget, Ramachandran Dinesh, President of The Confederation of Indian Industry and chairman, TVS Supply Chain Solutions Ltd, said, "We are asking for continuity. We are asking for the focus on CapEx and the infrastructure, which has happened very well in the past, to continue. We are recommending a 20% increase in CapEx spending, Rs 12 Lakh Crores to be spent on infrastructure. We are also looking at giving direction in terms of how equitable growth will be maintained in future and what the focus of the government will be..."
Rahul Garg, chairman of National Council on Direct Taxes, ASSOCHAM & Partner, Price Waterhouse & Co LLP, however, banks on the government's fiscal prudence.
"The industry expectation is that our financial prudence in running the economy, how has that performed - it should come out very clearly. So, I think this being an Interim Budget, everybody is eyeing whether we would be able to contain our fiscal deficit. It seems that by payment of taxes and collection of taxes by people and businesses, we have had a reasonably good collection of taxes."
He continued, "The overall government expenditure - both on infrastructure as well as on the welfare schemes - was in a range which is within the overall collection of taxes. Therefore, it is very likely that the industry expectation, the economists' expectation, the whole world's expectation of prudence in India's financial management would be very apparent."
Speaking of the Interim Budget, Samir Somaiya, President of IMC Chamber Of Commerce And Industry, however, said he expects some shortcomings.
"There will be some limitations, but I think the government will underscore their priorities. I also think that when you look at the demographic dividend that the country has - we have such a large young population, you need to also skill them if you need them to be ready for the kind of infrastructure, defence, space, agriculture, precision farming and the whole startup infrastructure that they also need to create. So, I think they will continue to build this ecosystem to build a virtuous cycle so that India continues to grow at 6.5% and more."
Speaking on the issue, Ajit Mangrulkar, director general of IMC Chamber Of Commerce And Industry said, "I think infrastructure has to be the key focus. India has been lagging in infrastructure and in the last couple of years we have seen that this government has put in a lot. We have seen a lot of projects which have come to fruition this year itself and any more which are in the pipeline will be implemented. So, I think, that is going to be a constant - infrastructure investment. Because infrastructure creates so many other opportunities, it creates investment, employment."
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