CII expects Indian Economy to grow in the range of 6.4-6.7% in FY26
At a press conference in New Delhi CII President however believes that geopolitical uncertainty could pose downside risk to Indian economic growth.
Amidst this global flux, India has shown resistance and has shown better growth trajectory as compared to other major economies such as China, United Kingdom (UK), US and Euro area.
Industry body CII also proposed a series of next-generation reforms needed to enhance ease of doing business in India.
These reforms span across multiple domains, including taxation, manufacturing costs, fiscal policy, environmental compliance, and logistics.
On GST reforms, CII recommends rate rationalisation from 5 slabs of current rates to three slabs. Essential items at 5 per cent, luxury and sin goods at 28 per cent, and a unified rate of 12-18 per cent for other items.
CIIs other recommendations include streamlining of Input Tax Credit (ITC) to eliminate credit blockages, coordinating audits across states, and reducing litigation through a National Appellate Authority. The Industry body also proposes bringing petroleum, electricity, and real estate under the GST ambit.
CII also asked for direct tax reforms, it recommends implementing the Income Tax Bill to simplify processes and reduce litigation. Measures such as Advance Pricing Agreements and Dispute Resolution Schemes should be encourage to avoid legal delays.
For Customs Duty reforms, CII proposed a 3-tier structure, 0-2.5 per cent for raw materials, 2.5-5 per cent for intermediates, and 5-7 per cent for final goods to streamline imports and enhance competitiveness.
Under Rationalising Cost of Manufacturing, land reforms suggest reducing over 50 zoning categories to 5-7 for more flexible land use, easing urban restrictions, and unlocking land held by PSUs.
In power sector, CII advocates tariff rationalisation, digitisation of distribution, and improved grid transmission.
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