There is no doubt that India is already under the grip of a third wave of the Covid-19 pandemic. The country recorded at least 2.68 lakh new cases today, including 6,041 cases of Omicron; taking the total tally to 3.67 crore. Notwithstanding, the third wave spreading like wildfire, a significant percentage of industry leaders are optimistic about India’s economic revival with confidence ruling high amongst Indian businesses, finds a pre-budget survey conducted by Deloitte Touche Tohmatsu India LLP (DTTILLP).
DTTILLP assembled a total of 163 responses from 10 industries. It was found that more than 75 per cent of respondents were positive about India’s economic revival as economic activities pick up steam with a healthy GDP growth.
The survey further finds that around 91 per cent of respondents believe that the ‘Atmanirbhar Bharat’ initiative (Self-reliant India), coupled with monetary policy actions by the Reserve Bank of India (RBI) played an instrumental role in driving back the economy from gloom last year.
“The industry leaders expect the Union Budget FY 2022-23 to build on to this momentum,” DTTILLP said in a release. The Union Budget is scheduled to be presented by Finance Minister Nirmala Sitharaman on February 1.
On the other hand, 55 per cent of business leaders believe that providing extra tax incentives to long-term investors for infrastructure investment can encourage growth in the country.
While, 45 per cent of respondents believe that the upcoming budget should focus on announcing incentives for increased R&D spending that can boost sectors like automobile, technology, telecommunication, life sciences and capital goods.
Industry leaders, through the Deloitte survey also conveyed some other expectations like enhancing export competitiveness, putting in place competitive import tariffs, and reducing administrative inefficiencies.
“The economy has witnessed a steady recovery during 2021-22”, said, Sanjay Kumar, Partner, Deloitte Touche Tohmatsu India LLP, while commenting on the survey findings.
“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,” he further added.
Also, most of the business intellectuals foresee an increased start-up activity fostered by the Centre’s stimulus packages (ECLGS) and policies, which will brighten up the Ease of Doing Business (EoDB) culture in the country, resulting in a faster economic revival, Kumar said.
The survey also finds that 59 per cent of respondents believe in the fact that India can be a favourable atmosphere to run a business. With this regard, they touched on three things: promoting digitalisation, simplifying tax regimes and, improving land and labour laws that would also help enhance the EoDB in India.
Meanwhile, Prime Minister Narendra Modi, today announced that January 16 will be observed as ‘Start-up day’ as they are the game changers, whereas small businesses are the spine of country’s economy.
“This partnership (between small businesses and start-ups) can benefit both, the society and the economy, especially women employment will get strengthened because of this,” Modi said as he interacted with start-ups via video conferencing on the occasion of Start-Up India Innovation Week.
The survey conducted by DTTILLP aimed at analysing the industry’s expectations from the upcoming ‘Budget 2022’, where focus will be on EoDB, self-reliance (start-ups) and economic growth.