A survey of Indian business leaders shows that the majority of them, about 60 per cent, are optimistic about India posting above 6.5 per cent growth during 2023-24.
The survey said business leaders, who are chief experience officers (CXOs), in India are confident that Budget 2023-24 will help fuel economic growth across sectors and industries, amid a potential global slowdown and geopolitical instability.
According to the survey from Deloitte, among the industry sectors, chemicals (72 per cent), capital goods (70 per cent), and energy (67 per cent) expressed confidence in growth being high, and felt that government initiatives, such as Atmanirbhar Bharat, production-linked incentive (PLI), and favourable monetary policies by the Reserve Bank of India for moderating retail inflation and maintaining significant forex, increased spending on infrastructure, and research and innovation, will further this momentum.
Business leaders who responded to the pre-Budget survey by Deloitte Touche Tohmatsu India (DTTILLP) said they believe that the Budget would define the "Amrit Kaal" agenda for India and fuel the economy to remain resilient and continue to grow at a healthy pace, while balancing concerns around inflation and global risks.
Critical to this growth will be the pace of capital expenditure, infrastructure development, and the need to boost infrastructure financing through private partnership. Sixty per cent of respondents suggested raising funds through Indian government bonds, according to the survey.
The statement from Deloitte said this proportion had increased by 12 per cent from the previous year's survey. It said, "Fifty-eight per cent respondents suggested that public-private partnership (PPP) should be encouraged to meet the funding gap and address issues that deter private participation, while bringing in innovative structures such as credit guarantee enhancement."
As global uncertainties and an economic slowdown loom across geographies, tax-related changes are expected to boost industry growth and are the most sought-after measures from the upcoming Union Budget, the survey added.
An overwhelming majority of respondents saw trade treaties as vehicles for increasing investment flows and providing exchange of emerging technologies to strengthen their role in global value chains (GVCs). Inclusion of micro, small and medium enterprises (MSMEs) in the GVC will bring in sustainability to industrial growth and improve trade flows, and strengthen their role in GVCs.
The survey said almost 60 per cent respondents believed that the recent push towards digitalisation had been advantageous for the sector, with 70 per cent respondents indicating the GST portal to be the most effective digital endeavour by the government.
Besides easing tax compliance, 45 per cent respondents anticipated the government to reduce tax litigation, while 44 per cent expect to gain clarification of tax laws and provisions such as tax deducted at source (TDS).
Additionally, the industry is expecting the simplification of the capital gains tax structure and removal of ambiguities in the interpretation of tax, thereby making compliance easier. "These will not only spur investment and economic growth, but also provide long-term relief to taxpayers and the tax administration," according to survey.
Sanjay Kumar, Partner, Deloitte Touche Tohmatsu India, said, "Despite global uncertainties, the Indian economy has been resilient and is well on its way to a growth rate of 7 per cent. With the vision of attaining a USD 5-trillion economy, the government has adopted a focused approach towards ease of doing business and enhancing industrial growth, generating employment, and increasing investments."
He said Union Budget 2023-24 holds great expectations from the industry to continue this momentum and lead the country towards economic prosperity.