Optimism and confidence run high among Indian companies as a significant percentage of industry leaders are positive about India’s economic growth and expansion despite the sharp rise in Covid-19 cases, a survey said.
According to the pre-budget survey by Deloitte Touche Tohmatsu India LLP (DTTILLP), which collected a total of 163 responses from 10 industries, more than 75 percent of respondents were positive about India’s economic growth and expansion.
The survey further found that about 91 percent of respondents (compared to 58 percent last year) believe that the ‘Atmanirbhar Bharat’ initiative, combined with monetary policy measures from the Reserve Bank of India (RBI), has contributed to the recovery of the economy. track.
“They (industry leaders) expect the FY 2022-23 Union budget to build on this momentum,” DTTILLP said in a press release.
Finance Minister Nirmala Sitharaman will present the Union budget in parliament on February 1.
Furthermore, about 55 percent of business leaders believe “providing additional tax incentives to long-term investors” for infrastructure investment could help drive growth in the country.
In addition, 45 percent of respondents believe that the budget should be focused on announcing incentives for increased R&D spending. This would benefit sectors such as life sciences, automobiles, capital goods, technology and telecommunications.
Improving export competitiveness, introducing competitive import tariffs and reducing administrative inefficiencies are some of the other expectations that industry leaders have raised through the Deloitte survey.
Commenting on the survey results, Sanjay Kumar, Partner, Deloitte Touche Tohmatsu India LLP, said the economy has seen a steady recovery in 2021-22.
“The Indian economy will continue to see growth momentum if the government is able to support efforts to implement reforms such as infrastructure growth monetization and PLI schemes,” he said.
Moreover, most business leaders expect that the increasing startup activity, coupled with the government stimulus packages and policies, will facilitate doing business in India, resulting in a rapid economic upturn, Kumar added.
According to the survey, about 59 percent of respondents believe that India provides a favorable atmosphere to run a business.
Encouraging digitalisation, simplifying tax regimes and improving land and labor laws would make doing business in India easier, it said.
DTTILLP said the survey was designed to analyze the industry’s expectations regarding the upcoming budget, from its point of view of economic growth, ease of doing business and self-reliance.
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