In a pre-Budget meeting with Revenue Secretary Sanjay Malhotra, the Confederation of Indian Industry (CII) urged the government to continue tax reforms and boost capital expenditure in the Union Budget for 2025-26. The industry chamber recommended increasing capital investment by 25% over the 2024-25 Budget Estimates (BE), with a strong emphasis on developing infrastructure in rural areas, agriculture, and the social sector.
Driving Tax Reforms for Simplification
CII highlighted the need for further tax simplification, suggesting that a streamlined tax regime could ease compliance burdens and foster a more competitive business environment. Tax reforms, according to CII, should aim to enhance transparency and predictability, making India an attractive destination for domestic and foreign investment.
Capital Investment Focus to Spur Growth
Emphasizing infrastructure investment, CII called for increased spending in sectors that directly impact rural development and agricultural growth. This focus, according to CII President, aligns with India’s broader growth aspirations and can help the country transition to a more inclusive and sustainable economy.
CII President noted, “India has emerged as a beacon of stability and growth in a fraught world. We look forward to a Union Budget that further consolidates India’s position, creating a competitive, inclusive, and environmentally friendly economy.”
A Budget Amid Global Uncertainty
CII Director General highlighted that the upcoming Budget will be presented at a time of global geopolitical and economic uncertainty. This, he said, presents both a challenge and an opportunity for India to build resilience and position itself as a leader on the global stage.
The Union Budget for 2025-26, expected on February 1, 2025, presents a unique opportunity for India to set a new reform agenda, focusing on sustainable growth, capital investment, and simplified tax structures to fuel the next phase of the nation’s economic development.
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