In an interview with PTI, newly-elected CII President Sanjiv Puri suggested considering income tax relief for those in the lowest income slab due to high inflation. He also proposed the establishment of an institutional platform for consensus building between the Centre and states to carry out reforms effectively.
The CII anticipates that the Indian economy’s performance and policies in the previous two stints will set the base for accelerating the reform process. Sanjiv Puri also mentioned expectations from the upcoming full Budget for 2024-25, emphasizing public capex, fiscal adherence, investment in social infrastructure, green fund, and rural sector.
The wholesale inflation rose to 2.61% in May, driven by higher food and manufactured item prices, while RBI Governor Shaktikanta Das stated that further policy actions would be considered if headline inflation remains at 4%. Additionally, Puri expressed the need for simplification of tax processes and suggested rationalizing capital gains. He also highlighted operational challenges in TDS and advocated for a three-tier structure for customs duties. The Income tax exemption limit under the old and new regimes was compared, and Puri conveyed optimism about the reform process strengthening. Finally, he expressed hope for a moderation in food prices due to a good monsoon, estimating future inflation at around 4.5% and anticipating a key interest rate cut by the Reserve Bank in the second half of the current financial year.