Simplifying India’s tax regime is likely to be the central government’s top priority to boost GDP growth, according to a majority of CEOs polled by Moneycontrol and Deloitte.
An exclusive Moneycontrol-Deloitte survey of 45 CEOs conducted between January 10 and 22 across the financial services, consumer goods, technology, and energy sectors revealed that 86.7 percent of the respondents believe tax simplification will be the Indian government’s priority to spur growth.
Efforts to streamline the regime is already underway, with the Centre working towards replacing the Income Tax (I-T) Act of 1961 with a more modern and simplified framework.
The proposed overhaul envisages an extensive review of the current Act, which spans 23 chapters. A dedicated I-T review committee, comprising 23 sub-committees and working groups, is scrutinising each chapter to identify areas for improvement.
55.6 percent of Indian CEOs also expect trade and investment reforms to spur growth. Trade reforms are expected to attract foreign investments and increase the country’s exports.
Meanwhile, 46.7 percent of the CEOs believe that reforms around digitising governance to enhance efficiency, transparency, and inclusion would be the best bet to boost growth.
Upskilling and reskilling of the labour force, specifically in the technology sector, is also expected to be Finance Minister Nirmala Sitharaman’s priority in the budget for 2025-26, according to 42.2 percent of the CEOs polled.
Further, reforms to reduce the fiscal deficit to 4.5 percent by FY26 without compromising the spending on infrastructure are also expected to be one of the key goals of the upcoming budget. India's fiscal deficit for the first eight months of this fiscal year (till November) stood at Rs 8.47 lakh crore, or 52.5 percent of annual estimates, widening from 50.7 percent.
According to the fiscal consolidation path laid out in 2021, the Centre aims to bring the fiscal deficit target below 4.5 percent by FY26.
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