PR No – 28
19th January, 2024
PHDCCI met Dr. V. Anantha Nageswaran, Chief Economic Advisor at his North Block Office, New Delhi
Industry body submitted representation to reduce the incidence of taxation on middle class to enhance aggregate demand in the country
PHDCCI delegation led by Shri Sanjeev Agrawal, President, PHDCCI, Shri Hemant Jain, Senior Vice President, PHDCCI, Shri Saket Dalmia, Immediate Former President, PHDCCI, Dr. S P Sharma, Chief Economist|Deputy Secretary General, PHDCCI, and Shri Suresh Chandra Joshi, Joint Secretary and Head Protocol, PHDCCI met Dr. V. Anantha Nageswaran, Chief Economic Advisor, Ministry of Finance, Government of India, at his North Block Office, New Delhi.
The industry body, PHDCCI, appreciated India’s outperforming economic growth with a growth rate of 9.1% in 2021–22 and 7.2% in 2022–23 and 7.3% in 2023-24 according to NSO advance estimates.
Industry body, PHDCCI, suggested that the economy is expected to grow to a size of more than USD 4 trillion in FY 2024-25 and grow to USD 5 trillion in FY 2026–27. By 2030, India will be a USD 7 trillion economy, positioning itself as the 2nd largest economy in the Asia-Pacific region and the 3rd largest in the World economy.
To strengthen the high growth trajectory of the Indian economy, the industry body, PHDCCI, discussed the various developments in the arena of trade and industry; the issues related to MSMEs; demand trajectory, particularly urban and rural demand; the incidence of taxation on the middle class; ease of doing business in factories; and growth of the rural economy, among others.
However, industry body, PHDCCI, submitted that demand has been observed in the sluggish mode since the last many quarters impacted by high inflation.
Industry body, PHDCCI, says that inflation impact is very high, affecting disposable incomes, particularly in the rural segments.
The industry body, PHDCCI, suggested a significant relief in direct taxation as peak rates of 30% is imposed on the middle income levels of 15 lakh.
The rationalization of taxation for the middle income will have a positive impact on aggregate demand and to enhance the tax base in the country, said the industry body, PHDCCI.
The industry body, PHDCCI, suggested supporting rural enterprises such as micro and small enterprises in the rural segments so that employment opportunities are created and rural incomes are enhanced to support the growth at higher levels.
Moreover, the industry body, PHDCCI, appreciated the consistent growth of the agriculture sector at more than 3% and suggested further reforms to strengthen the agricultural sector to support the food processing industry to generate more employment opportunities, with extended agriculture infrastructure.
PHD Chamber of Commerce and Industry