Industry Body CII's Recommendations
The Confederation of Indian Industry (CII) has proposed several measures to enhance economic growth and competitiveness in India. Here are the key recommendations:
Economic Growth Projections
- The Indian economy is expected to grow by 6.4-6.7% in FY26, primarily driven by strong domestic demand despite global uncertainties.
- In FY25, India’s GDP grew by 6.5%.
Trade Negotiations
- A Free Trade Agreement (FTA) with the US is planned in stages, addressing politically sensitive areas later.
- Emphasis is placed on understanding and addressing challenges faced by Indian industry.
Six Key Areas for Growth
- Next-generation reforms
- Manufacturing
- Technology & AI
- Sustainability & Energy Transition
- Livelihoods
- Trust
Tax Reforms
- Rationalisation of the GST structure from five slabs to three:
- 5% for essential items
- 28% for luxury and sin goods
- 12-18% for all other items
- Introduction of a three-tier import tariff structure:
- 0-2.5% for raw materials and inputs
- 2.5-5% for intermediate goods
- 5-7% for final goods
Additional Proposals
- Establishment of a joint skills acceleration fund involving public, private, and CSR contributions.
- Introduction of a capital support scheme for small and medium enterprises (SMEs).
- Creation of state fiscal councils to assess state budgets and fiscal risks.
- Improved dispute resolution, decriminalization measures, and overall tax reforms.
