India Inc has proposed to widen the ambit of the government's production-linked incentive (PLI) scheme to cover critical sectors like drones and defence. In a pre-budget discussion with Revenue Secretary Sanjay Malhotra on November 6-7, industry bodies also called for an independent tax dispute resolution forum and sought higher capex outlay for 2025–26.
The corporates highlighted tax simplification, strategic disinvestment, and supportive reforms in capital gains tax as areas crucial for the country's sustained economic competitiveness.
Confederation of Indian Industry (CII) President and ITC Chairman Sanjiv Puri stressed on the need to expand the the PLI scheme beyond 14 sectors to support drones, aerospace, and defence. “The upcoming budget is an opportunity to reinforce India’s stability and create a blueprint for a prosperous, equitable, and technologically advanced country. India has the potential to be a global leader in tech-driven manufacturing. Expanding the PLI scheme to strategic sectors could provide the necessary boost to these areas,” he said.
PHD Chamber of Commerce and Industry (PHDCCI) President Hemant Jain said sectors such as medicinal plants, handicrafts, leather, footwear, and space should also benefit from PLI support.
Dispute Resolution Forum
To streamline tax-related litigations, India Inc recommended setting up an independent Dispute Resolution Forum adjudicated by retired judges or senior legal professionals to address disputes at both pre- and post-assessment stages, enhancing ease of doing business. “A time-bound, independent forum would build trust and reduce prolonged litigation, allowing industries to focus on growth,” CII told the revenue secretary.
With a call for a capex increase, the industry bodies stressed the need for infrastructure development, especially in rural and social sectors, to drive employment and consumption.
Manufacturing Competitiveness
They also highlighted private sector investment as a catalyst for growth, and suggested an integrated approach towards industrial infrastructure, logistics, and skill development. They proposed higher incentives for Micro, Small and Medium Enterprises (MSMEs) to adopt advanced technologies and recommended a National Decade of Deep Tech initiative focused on AI, quantum computing, and Industry 4.0 skills.
The Federation of Indian Chambers of Commerce & Industry (FICCI) also called for tech advancement by recommending a long-term deep-tech initiative to position India as a global innovation leader.
GST 2.0
Simplification in goods and services tax featured high on the India Inc wish list for Budget 2025-26. The business community suggested a GST 2.0 model with three slabs. "It would ease the compliance burden on industries and help widen the tax base," PHDCCI told the revenue secretary. They also suggested to streamline the GST regime by bringing power, petroleum, and ATF under its scope.
The industry bodies also sought raising the allocation for education by 6 percent and for healthcare by 3 percent of the GDP.
Exports and Imports
The industry associations sought an interest equalisation scheme for pre- and post-shipment export credit for MSMEs to improve the competitiveness. FICCI proposed a one-time amnesty scheme for customs to settle past disputes which would allow importers to settle past dues with waivers on penalties and interests. It also highlighted the need to streamline the BIS certification process to speed up customs clearances for importers, suggesting that a smoother process would reduce delays and enhance ease of compliance.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
