Industry seeks tax relief, capex push, MSME boost

FM IS EXPECTED TO AIM FOR A BALANCE BETWEEN GROWTH AND INFLATION THROUGH HER FISCAL POLICY MEASURES IN UPCOMING BUDGET

- Rajeev Jayaswal

NEW DELHI: Despite strong economic fundamentals, the Indian economy stares at headwinds such as global uncertainties, inflation, and unfair Chinese competition that may require the budget to focus on enhancing capital expenditure, easing compliance burden, enhancing disposable income and encouraging small firms through cheaper credit and tax relief, industry representatives told the finance minister on Monday.

Excess capacity in China has been one of the key concerns for both the domestic industry as well as exporters fearing dumping, at least three people present at the pre-budget meeting said, requesting anonymity. The situation could aggravate once the Trump administration imposes tariff barriers against Chinese dumping. For India, the survival lies in reduction in cost of manufacturing and producing the best quality product to compete with cheaper Chinese goods, they said after the meeting. US President-elect Donald Trump vowed to impose huge tariffs on imports from Canada, Mexico and China after he assumes power on January 20.