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Last Updated : Jun 11, 2019 06:52 PM IST | Source: Moneycontrol.com

FM Nirmala Sitharaman holds second pre-Budget meeting with industry representatives

Representatives who attended the meeting included Vikram S. Kirloskar, President, CII, Balkrishan Goenka, President, ASSOCHAM, and Sandip Somany, President, FICCI, among others.

Kamalika Ghosh @GhoshKamalika

Finance Minister Nirmala Sitharaman on June 11 held her second pre-Budget consultations with different stakeholder groups from industry, trade and services sectors.

The minister said that the central government has taken several industry specific initiatives since 2014 that had significantly improved the overall business environment. She said that emphasis was given to simplification and rationalisation of the existing rules and introduction of Information Technology to make governance more efficient and effective.

The meeting was attended by Anurag Thakur, Minister of State for Finance and Corporate Affairs, Subhash Chandra Garg, Finance Secretary, Girish Chandra Murmu, Expenditure Secretary, Ajay Narayan Pandey, Revenue Secretary, Ramesh Abhishek, Secretary, Department for Promotion of Industry and Internal Trade, and Anup Wadhawan, Secretary, Department of Commerce, Ministry of Commerce and Industry, among others.

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Representatives of  industry, services and trade sectors submitted several suggestions concerning industrial sector, land reforms, special economic zones, industrial policy, investment in research and development, simplification of tax regime, tapping potential in tourism sector, Foreign Direct Investment (FDI), Good & Services Tax (GST), Capital Gains Tax, Corporate Tax, MSME Sector, e-commerce, skill development, education and healthcare sectors, startups, media and entertainment sector and food manufacturing industry.

"We suggested corporate tax reduction along with removal of exemptions.We also suggested to the government to re-look at taxes on equity. Equity needs to grow as it makes up investment. We also suggested setting up a structure where bottlenecks can be found and released. Suggested building council to get consensus among state and centre for labour reforms, environmental issues etc," Vikram Kirloskar, President, CII, said after the meeting.

Representatives who attended the meeting included Vikram S. Kirloskar, President, Confederation of Indian Industry (CII), Balkrishan Goenka, President, ASSOCHAM, and Sandip Somany, President, FICCI, among others.

Ajai Sahai, Director General & CEO of Federation of Indian Export Organisations said that declining flow of credit to export sector a key issue.

"Exports need to be brought into priority sector lending. Liquidity challenge at GST front has to be looked into. Upfront payment of GST causing problem to exporters, so we are awaiting the roll out of e-wallet. Government should increase investment in research and development and may look into tax deductions for the same," he said.

Industry body ASSOCHAM's President BK Goenka recommended more favourable norms for investment – both domestic and foreign direct investment.

Goenka recommended that 100% depreciation should be permitted in the first year of investment for all new investments, both FDI or domestic.

"After dismantling of FIPB, FDI proposals are dealt with by the concerned sectoral ministry. This is causing significant delays in the approval process.  Therefore, it is suggested to have a similar central/ nodal agency/ single-window for such cases.  A dedicated desk for Japan has been very effective.  We suggest a similar country-specific desk be set up for major FDI source countries," he said.

India Union Budget 2019: What does Finance Minister Nirmala Sitharaman have up her sleeve? Click here for top and latest Budget news, views and analyses.
First Published on Jun 11, 2019 06:45 pm
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