INSUBCONTINENT EXCLUSIVE:
from slow investment growth and subdued exports but also from weakening growth in consumption demand, industry body Ficci has told the
Finance Ministry.In a pre-Budget 2019-20 memorandum to the ministry, Ficci has warned of long-term repercussions if the serious concerns on
slowdown in domestic demand
Amidst the rising uncertainties and economic challenges on both domestic and global fronts, there is an urgent need to re-energise the
slow growth in investments and subdued exports but also from weakening growth in consumption demand
and reviving the rural economy, the chamber has sought an extension and hike in the Interim Budget's Direct Income Support (DIS) of Rs
The existing agriculture subsidies should be reviewed and most/all of them be included within the DIS."To enhance agriculture yields and
should be developed on priority under the Rashtriya Krishi Vikas Yojana (RKVY) and rural development schemes to enable small producers to
compatible with the international standards
cent coupled with dividend distribution tax rate of 20 per cent makes the effective tax cost too high for Indian companies.Moreover, the
increased rate of surcharge coupled with the health and education cess makes cost of doing business in India significantly higher."The rate
sought removal of Minimum Alternate Tax, currently at 18.5 per cent.Automobile sales during 2018-19 have slowed down significantly across
segments like passenger cars as well as two-wheelers
Annual sales growth in scooters has been below 1 per cent in 2018-19, as against 19.3 per cent growth registered in previous year
Sales of passenger cars have seen a contraction.For "reviving the animal spirits of industry to boost investments", the chamber said "the
government should also announce some major public projects across sectors like power, infrastructure, oil and gas, etc
This will create demand for capital goods
Adequate incentives should also be given to encourage domestic production of such capital goods".The chamber also sought redressal of issues
Government could also consider incentivising start-ups and MSMEs working on emerging technologies like Artificial Intelligence, Machine
Learning for healthcare, Blockchain for land records and public records, and Big Data Analytics, etc
by providing various tax and non-tax benefits."
