The Confederation of Indian Industry (CII) has advocated for a decrease in personal income tax and an increase in government expenditure. The trade group has recommended increasing capital investment from the present level of 2.9% of GDP to 3.3-3.4% in FY24. It has emphasized the importance of reviving both investment and consumer demand.
In order to eliminate complications and contradictions, the capital gains tax’s rates and holding period need to be reexamined, according to Sanjiv Bajaj, president of the CII. In order to put more money in the hands of consumers, he also supported lowering the rates on personal income taxes.
Additionally, CII has suggested prioritizing a package for substantial play of urban municipal bonds and widening corporate bond markets (including infrastructure bonds). Along with traditional infrastructure like roads, railroads, and ports, it has also been urged to increase spending on green infrastructure.