FICCI's Bold Pre-Budget Recommendations: Paving the Path for Progressive Economic Reforms

Ahead of the Union Budget, FICCI recommends increasing capex by 15% in FY26 and introduces comprehensive reforms across land, labor, and power. The industry body emphasizes green transitions, women's workforce participation, and bolstering sectors like defense and agriculture to maintain growth amid global uncertainties.

In a strategic move reflective of both ambition and foresight, the Federation of Indian Chambers of Commerce & Industry (FICCI) has presented the finance ministry with a robust set of pre-budget proposals. Chief among their recommendations is a 15 percent hike in capital expenditure for FY26, aimed at sustaining growth amidst prevailing global economic uncertainties. FICCI underscores the necessity of investing in infrastructure that spans physical, social, and digital realms as a cornerstone for balanced economic progression. Their suggestions follow the historic Rs11.11 lakh crore capex allocation in the Union Budget of 2024-25, marking a shift toward productive expenditure.

Furthermore, FICCI calls for critical reforms in essential sectors, specifically land, labor, and power, advocating for the establishment of inter-state institutional platforms akin to the GST Council. This initiative aims to facilitate consensus-building and propel much-needed reforms forward. While the government has made strides in tax simplification, FICCI suggests a further overhaul to streamline compliance, urging the rationalization of TDS/TCS rates and elimination on GST-linked transactions. An independent dispute resolution forum is also recommended to bolster taxpayer confidence and accelerate case resolutions.

On the social and environmental fronts, FICCI highlights the drive towards net-zero emissions by 2070 and stresses the necessity of policy frameworks to facilitate green transitions. In addressing women's economic participation, proposals include tax exemptions for daycare, utilizing CSR for women's dormitories, and establishing statutory bodies for certifying daycare centers. For defense, FICCI suggests a rigorous focus on domestic production and cutting-edge technologies. It also advocates an agricultural productivity mission for the country's least productive districts and promotes sizeable investments in healthcare to raise public spending to 2.5 percent of GDP by 2025.

(With inputs from agencies.)