Bengaluru : The government should contemplate a reduction in the rates of personal income tax in its next push for reform as this would increase disposable incomes and revive the demand cycle, Confederation of Indian Industry (CII) President Sanjiv Bajaj said on Wednesday.
He said the government should work towards inclusion of some of the large market cap companies into the global equity indices like MSCI and FTSE indices, expedite India’s entry into J P Morgan’s Global Emerging-Market Bond Index and Barclays Global Bond Index, and consider bringing out a special issue of India Millennial Bonds like was done in 2008.
Bajaj underscored the importance of expanding the Production Linked Incentive (PLI) scheme and bringing more sectors within its ambit, especially those which are labour intensive and also in sectors where imports are high, but there is a possibility of building a competitive domestic industry.
A PLI for electrolysers will help achieve India’s vision of producing 5 million tonnes of Green hydrogen by 2030 and also become an exporter of green hydrogen, he said.
To bring in speed and transparency in regulatory approvals and bringing down the regulatory and compliance costs, Bajaj mentioned that both the central and state approvals and compliances for new and existing businesses should be brought onto the newly launched National Single Window System (NSWS) portal.
Besides, all states should be onboarded under the Gatishakti initiative for better planning and execution of infrastructure projects. Further a provision in the portal for the private sector to provide suggestions on infrastructure gaps, as an end user, could be considered for planning purposes, he said.
Bajaj said all fuels and electricity duty should be brought under GST to make Input Tax Credit available to industry.
The R&D expenditure should be ramped up from 0.7 per cent of GDP. Besides, R & D efforts should be channelised towards industry relevant research and public Private Partnerships in R&D should be promoted, starting with the defence sector, he said.
Bajaj emphasized that sustainability imperatives get integrated into business and trade for which its manufacturing sector and its infrastructure should be green.
Expressing his views on the role of industry and CII in taking India to a US$ 40 trillion goal post by 2047, he said that CII believed that there is a lot that industry and CII could do themselves.
For internationalization of the Indian economy, Bajaj said CII will prioritize both exports and inward and outward investments and use CII’s 8 overseas offices for further deepening and elevating our overseas linkages while on technology, the objective will to facilitate R&D spending of 2% of GDP with a higher proportion coming from industry.