scorecardresearch
Budget 2022: 75% of India Inc. positive about the economy, says Deloitte

Budget 2022: 75% of India Inc. positive about the economy, says Deloitte

A total of 163 responses from senior professionals were collated for the survey which was conducted across 10 industries.

A total of 163 responses from senior professionals were collated for the survey which was conducted across 10 industries. (Credit: Mohsin Shaikh) A total of 163 responses from senior professionals were collated for the survey which was conducted across 10 industries. (Credit: Mohsin Shaikh)

Around 75 per cent of industry leaders are confident about the economy's recovery and expansion despite the surge seen in the third wave of COVID-19, according to a pre-Budget 2022 survey by consulting major Deloitte Touche Tohmatsu India LLP (DTTILLP). A total of 163 responses from senior professionals were collated for the survey which was conducted across 10 industries. 

As per the survey results, about 91 per cent of respondents, compared with 58 per cent last year, believe that the government's 'Atmanirbhar Bharat' initiative, coupled with monetary policy actions by RBI, including extending EMI reliefs, and reducing repo and reverse repo rates, did contribute to bringing the economy back on track. Industry leaders expect Budget 2022 to build on this momentum.

(Credit: Mohsin Shaikh)

Enhancing export competitiveness, putting in place competitive import tariffs, and reducing administrative inefficiencies are some other expectations that industry leaders conveyed through the Deloitte survey. 

Investments in infrastructure

Investments in infrastructure are another significant ask of industry leaders in Budget 2022. About 55 per cent of respondents believe that providing extra tax incentives to long-term investors for infrastructure investment can help promote growth in the country. While 45 per cent of respondents believe that the Budget should focus on announcing incentives for increased R&D spending.

Taxation 

The survey indicates that industry perception towards group taxation has significantly changed. 70 per cent of respondents now feel that this idea should be implemented within the next year. The respondents poined out that Budget 2022 should focus on a simpler tax regime and regulations to improve compliance. About 59 per cent of respondents also highlighted the role of technology and digitisation in this aspect, in addition to implementing an online single-window system.

Nearly 35 per cent of respondents want Budget 2022 to address the issue of extending higher credit support to MSMEs, and an accelerated divestment and asset monetisation programme.

PLI Schemes

About 56 per cent respondents also believe that the PLI scheme was a game-changer especially for the telecommunication and technology industry, followed by the electronics, and life sciences and healthcare industries. 

More than 60 per cent business leaders feel that the PLI scheme will attract investors and increase manufacturing and exports, which will boost the growth of different sectors and the economy. 

Ease of doing business 

Around 59 per cent of respondents believe that India provides a favourable atmosphere to run a business. They added that encouraging digitalisation, simplifying tax regimes, and improving land and labour laws would help enhance the ease of doing business in India. 

Sharing his views on the survey findings, Sanjay Kumar, Partner, Deloitte India, said, "The economy has witnessed a steady recovery during FY'22. The Indian economy will continue to witness the growth momentum if the government is able to sustain the efforts on implementation of reforms such as asset monetisation for the infrastructure growth, and PLI schemes." 

Also read: Budget 2022: 5 key concerns of FPIs and NBFCs

Also read: Budget 2022: Govt could ease compliance norms for start-ups, says Piyush Goyal