New Delhi: PHD Chamber of Commerce and Industry has suggested that the Union budget 2023-24 must focus on revitalizing private investments, consumption and employment creation.
”The Union Budget 2023-24 is being presented at a crucial juncture of geo-political uncertainties, high inflation and slowing world economic growth. At this juncture, calibrated steps to enhance domestic sources of growth would be crucial to maintain the steady economic growth trajectory,” Saket Dalmia, President, PHD Chamber of Commerce and Industry said on Monday.
To enhance the momentum in private investments, there is a need to percolate of ease of doing business at the factory level, rationalization of cost of doing business, rationalization of taxation, state of the art infrastructure, and enhanced incomes in the agriculture sector would go a long way to revitalize the private investments in the country, Dalmia said.
”To enhance the consumption in the economy, there is a need to increase the tax rebate benefits for consumption expenditure. Tax rebate on purchase of a self-occupied house is given Rs 2 lakh only since the last many years. This needs to be enhanced with the wider scope of consumption expenditure such as purchase of more than 1 house, purchase of car, along with other durables. Consumption expenditure rebate must be enhanced to Rs. 5 lakh per annum. This will not only enhance the aggregate demand in the economy but also attract private investments, increase capacity utilization of the firms and create enormous employment opportunities in the economy,” he said.
To enhance the capacity utilization in the economy though consumption is the most significant ingredient, reduced costs of doing business at this juncture is also an important factor which increases the efficiency of the enterprises and enhances the production possibility frontiers, he said.
”To enhance the employment creation in the economy, we suggest further reforms in the Agri and Food Processing sector with a great infusion of public investments in the Agriculture infrastructure. Reforms in rural infrastructure logistics and a cold chain are required as it would help in increasing the level of the food processing industry and rural entrepreneurship. This would lead to increased participation in global agriculture and food exports. Exports of Agri and Food Processing products should be increased to the level of US$ 100 billion in the next three years from the current level of around US$ 50 billion (2021-22),” Dalmia said.
The budget should provide adequate resources for the development of tourism infrastructure in the country, the industry body said.
Dalmia said to enhance the quality of social infrastructure, focus on twin merit goods of education with skill development and basic health with safety must continue with a longer-term vision.
”We suggest that infrastructure investment in the economy must not be less than 10% of the GDP to achieve state of art infrastructure and to become a developed economy by 2047,” he said.