New Delhi,jan 28
Ahead of Union Budget on February 1, about 64 per cent of industrialists expressed optimism regarding India’s growth in a “quick survey” conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI).According to the survey results, nearly 60 per cent of participants projected a GDP growth rate between 6.5 and 6.9 per cent for 2025-26.Though the numbers mark a moderation from the high growth of over 8.0 per cent witnessed in 2023-24 – it is in sync with persistent headwinds on account of external factors, the survey added.”The Government’s commitment to fiscal consolidation has put us in a good state and the survey participants expected the government to remain on that course,” the survey said.
According to the survey, about 47 per cent of participants expected the government to meet the fiscal deficit target of 4.9 per cent for FY 2024-25 and another 24 per cent reported that the government could improve and report a lower fiscal deficit number for the current year.The current round of FICCI’s Pre-budget 2025-26 Survey was conducted between late December 2024 and mid-January 2025.
The survey drew responses from over 150 companies spanning diverse sectors, offering a comprehensive insight into India Inc’s sentiments amidst moderating economic growth.A significant focus of the survey was on macroeconomic policy interventions. The majority of respondents highlighted the need for sustaining public capital expenditure, with 68 per cent calling for a thrust on capex to sustain the growth momentum. At least a 15 per cent increase in capex allocation for FY 2025-26 is being looked forward to by members of the Indian industry.Additionally, over half of the respondents emphasised the importance of reforms to further enhance the ease of doing business.
Reforms pertaining to factors of production – particularly with respect to areas like land acquisition, labour regulations, and power supply – remain important.
Last year’s Union Budget had indicated a roadmap for the next generation of reforms – the industry members look forward to further guidance on the same. Further, concern was expressed regarding the muted demand situation. A significant number of industry members have called for a review of the direct tax structure. A relook at the slabs and the tax rates is warranted as this could leave more money in the hands of people and spur consumption demand in the economy.The respondents also called for a strong policy push on simplifying the tax regime, incentivizing the development of green technologies/renewables and EVs, and easing compliances through digitization. The participants also showed support for an amnesty scheme under customs, with 54 per cent favouring its introduction to enable swift resolution of disputes, as per the survey. The sectoral focus for the upcoming budget was clear, with participants identifying infrastructure, manufacturing (particularly Industry 4.0), and agriculture/rural development as critical areas for policy attention. Nearly 40 per cent of the respondents stressed the continued need to support the MSMEs, given the pivotal role of the sector in driving employment creation.
