New Delhi: To gauge the prevailing industry sentiment going into the Union Budget 2025-26, the FICCI recently conducted a Pre-Budget Survey. Results here show that majority feel confident regarding the future direction of India's economy with optimism in the near term as it stands at a healthy 64%.
Nearly 60% of the respondents in the survey expect GDP growth between 6.5% and 6.9% for 2025-26, which is a moderated but stable outlook compared to the 8% growth seen in 2023-24. External factors and global headwinds were noted as reasons for the tempered expectations.
Government emphasis on fiscal prudence was applauded. Some 47% of the respondents expect that the fiscal deficit target of 4.9 per cent for FY 2024-25 would be achieved, with 24percent expecting a more modest deficit.
Call for Sustainable Capital Expenditure
A high point of the survey would be that there is a call for continued public capital expenditure, as nearly 68% of the respondents want to see capex allocation at least increase by 15% to keep the growth momentum going. Infrastructure development was an area found to be emerging under such sectors as transportation and manufacturing.
Ease of Doing Business and Tax Reforms
More than half of the participants emphasised the need for reforms to enhance ease of doing business. Specific recommendations include streamlining land acquisition processes, simplifying labour regulations and ensuring reliable power supply.
Tax reforms were another priority with calls for revisiting direct tax slabs and rates to boost disposable incomes and consumption demand. Simplifying tax compliance, addressing custom duty inversions, and rationalising TDS provisions were also highlighted.
Sectoral Focus
Participants mentioned the infrastructure, manufacturing and agricultural sectors as vital sectors for focus by policy through the next Budget. Also, close to 40% of participants wanted more emphasis on MSMEs by simplifying access to credit, facilitating the uptake of technology, and sustainable strategies.
Green Economy and Export Competitiveness
The respondents called for policies that incentivise renewable energy, green technologies and electric vehicles. On the export side, improving logistics efficiency and extending interest equalisation schemes were considered essential to enhancing India's global trade competitiveness.
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