The Confederation of Indian Industry (CII) has proposed a list of over 250 recommendations across 14 areas to boost economic growth and usher in the next generation of reforms. The proposals, outlined in the CII’s report, “Policies for a Competitive India,” are aligned with the government’s reform trajectory and are intended to support transformative change.
Key Proposals
The CII’s recommendations are wide-ranging and cover several sectors of the economy. Some of the most significant proposals include:
- Faster Dispute Resolution: The industry body has called for streamlined processes for legal and commercial disputes to improve the ease of doing business. This includes expanding commercial courts and strengthening arbitration councils.
- Taxation and Fiscal Reforms: The proposals suggest changes to taxation norms, such as linking personal income tax exemptions and standard deductions to inflation. They also recommend broadening the tax base to help reduce the country’s revenue deficit. Additionally, the CII has called for a simplified GST structure that includes bringing petroleum and real estate under its purview.
- Time-bound Approvals and Digitization: The report advocates for a reduction in bureaucratic delays by implementing time-bound approvals and single-window clearances. It also recommends digitizing land titling to increase efficiency and transparency.
- Power Sector Reforms: The CII has urged for the removal of power sector cross-subsidies to ensure competitive tariffs and has also suggested greater private participation in nuclear energy.
- Employment and Labor Policies: The proposals include creating a national employment policy, a framework for the gig economy, and a national minimum wage.
Fiscal Deficit and Tax Exemption
The CII report aims to reduce India’s revenue deficit, which is projected to be ₹5.23 trillion in fiscal year 2026 (FY26), to zero. For personal income tax, the proposals suggest that a standard deduction of ₹75,000 and an income exemption of up to ₹12 lakh should be linked to inflation under the new tax regime. For those with higher incomes, an exemption of up to ₹4 lakh is proposed.
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Source: Live Mint
