Trade & Services Industry want hiked interest subvention and R&D support in Budget

During the meeting, the industry representatives conveyed their suggestions to the finance minister ranging from exports and the need to enhance R&D, Interest Equalization Scheme, ease of doing business, and issue of employment among others.

As part of pre-budget consultations, Union Finance Minister and Corporate Affairs Nirmala Sitharaman chaired a meeting with representatives of trade and services to take suggestions for the upcoming General Budget 2024-25 in New Delhi, today. During the meeting, the industry representatives conveyed their suggestions to the finance minister, ranging from exports and the need to enhance R&D, Interest Equalisation Scheme, ease of doing business, and issue of employment, among others.

Ashwini Kumar, President, of FIEO, demanded greater government support for R&D to support exports. He said, "Exports require R&D and innovation and therefore, the fiscal support to R&D should go up. We are looking into 250 to 300 per cent tax under Section 35 (2AB) of the Income Tax Act." FIEO other demands include the development of an Indian Shipping line, extension of the Interest Subvention Scheme for additional five years, and the subvention rate increased from 3 per cent to 5 per cent for MSME manufacturers and from 2 per cent to 3 per cent for others.

The exporters body also asked for marketing support from the government, adding that the Market Access Initiative (MAI) scheme is grossly inadequate. Speaking on behalf of NASSCOM, Ashish Aggarwal, Head of Public Policy made suggestions on ease of doing business. He asked the Finance Minister to enhance ease of doing business to facilitate the service sector exports. NASSCOM also asked for a review of the safe harbour regime from the government. It pointed out the need to make more investments in deep tech startups and encourage foreign domiciled Startups to listen to India's needs.

Brij Bhushan Agarwal, VP, of Indian Chambers of Commerce, asked for creating jobs through Made in India initiatives of the government. He asked for the development of additional R&D centre for the need of the new economy and new products. Another big concern of the industry was Chinese dumping in the Indian markets. Ajay Sardana, President &Head, Petchem Industry Affairs, Reliance Industries and Chairman, Petrochemicals Committee of Indian Chamber of Commerce, pointed out at Chinese dumping after Covid-19. He said,

"We requested the Finance Minister to evaluate on the tariffs India is putting on China. There is a need to review it so that the domestic capacity can get increased." Other prominent industry leaders who attended the pre-budget meeting with finance minister include Parminder Singh Kakaria, Head Corporate Affairs, Wipro, Debjani Ghosh, President, NASSCOM, and Ashwini Kumar, President, FIEO.

FM Nirmala Sitharaman is set to present the Union budget for 2024-25 in the third week of July. Sitharman had presented an interim budget on February 1 ahead of the Lok Sabha polls. She has so far presented six budgets in a row and will create a record when she presents the full-fledged budget for the new term of the BJP-led Union government. (ANI)

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