Ahead of the union budget, the industry chamber said it expects the central bank to cut the benchmark interest rate by 25 basis points in its policy review next month, with the consumer price index (CPI)-based inflation expected to significantly reduce.
Projecting India’s GDP growth at 6.8 per cent in this fiscal and 7.7 per cent in FY26, the PHD Chambers of Commerce and Industry recently said the country is expected to become the fourth largest economy in the world by 2026, surpassing Japan.
It expects the central bank to cut the benchmark interest rate by 25 bps in its policy review next month, with a significant reduction in CPI inflation.
“We are expecting that in the coming quarters, CPI inflation should come down significantly to the level of somewhere between 4 to 2.5 per cent,” PHDCCI deputy secretary general S P Sharma told a press conference in New Delhi.
PHDCCI suggested that the tax rate on entities under proprietorship or partnership and LLP—33 per cent now—should be 25 per cent.
India should focus on promising sectors like agriculture and food processing, fintech, semi-conductor, renewable energy, health and insurance, and a commitment to sustainable development, it said.
“Last but not least, we suggest a five-pronged comprehensive strategy, including increased capital expenditure, enhanced ease of doing business, reduction in the cost of doing business, focus on labour-intensive manufacturing and greater integration in global value chains, to lead India’s growth trajectory to higher growth in the coming years,” the industry body added.
Fibre2Fashion News Desk (DS)
