CII Projects India's Robust Economic Growth with Proposed Reforms

The Confederation of Indian Industry (CII) anticipates a promising growth trajectory for India's economy, predicting an expansion rate of 6.4-6.7% for the fiscal year 2026-27, attributed significantly to strong domestic demand. Speaking at a New Delhi press conference, CII President underscored the potential risks posed by ongoing geopolitical uncertainty, which could impact economic momentum.

Despite global volatility, India has displayed remarkable resilience and has outpaced major economies like China, the UK, the US, and the Eurozone. CII highlighted the necessity of implementing next-generation reforms to further ease business operations and fortify India's competitive stance.

CII's comprehensive reform agenda encompasses several key areas including taxation, manufacturing costs, and logistics. Notably, the industry body proposed a restructuring of GST rates, advocating for a shift from five slabs to three: essential goods at 5%, luxury items at 28%, and a consolidated rate of 12-18% for others.

Additionally, CII suggested improvements in Input Tax Credit (ITC) processes to reduce credit blockages, a coordinated audit approach among states, and diminishing litigation via a National Appellate Authority. The proposal extends to bringing sectors like petroleum and electricity under GST.

Direct tax reforms outlined by CII include advancing Income Tax Bill enactments to streamline procedures and minimize disputes, alongside promoting Advance Pricing Agreements and Dispute Resolution Schemes to hasten legal procedures.

For customs duty, CII recommends a tiered structure with rates tailored for raw materials, intermediates, and final goods, aimed at optimizing imports and boosting competitiveness. Manufacturing reforms involve consolidating over 50 zoning categories for land use, simplifying urban regulations, and monetizing PSU-held land to cut costs.

In the energy sector, CII calls for tariff adjustments, digital transformations in distribution, and enhanced grid infrastructures. Furthermore, to trim logistics expenses, it suggests tariff streamlining and the creation of railway freight corridors linked to ports.

These proposals collectively promise to enhance regulatory efficacy, reduce operational costs, and establish a more business-conducive environment across India. (ANI)

(With inputs from agencies.)