Industry Body CII's Recommendations

The Confederation of Indian Industry (CII) has proposed several measures to enhance economic growth and competitiveness in India. Here are the key recommendations:

Economic Growth Projections

• The Indian economy is expected to grow by 6.4-6.7% in FY26, primarily driven by strong domestic demand despite global uncertainties.
• In FY25, India’s GDP grew by 6.5%.

Trade Negotiations

• A Free Trade Agreement (FTA) with the US is planned in stages, addressing politically sensitive areas later.
• Emphasis is placed on understanding and addressing challenges faced by Indian industry.

Six Key Areas for Growth

• Next-generation reforms
• Manufacturing
• Technology & AI
• Sustainability & Energy Transition
• Livelihoods
• Trust

Tax Reforms

• Rationalisation of the GST structure from five slabs to three: 
  • 5% for essential items
  • 28% for luxury and sin goods
  • 12-18% for all other items
• Introduction of a three-tier import tariff structure: 
  • 0-2.5% for raw materials and inputs
  • 2.5-5% for intermediate goods
  • 5-7% for final goods

Additional Proposals

• Establishment of a joint skills acceleration fund involving public, private, and CSR contributions.
• Introduction of a capital support scheme for small and medium enterprises (SMEs).
• Creation of state fiscal councils to assess state budgets and fiscal risks.
• Improved dispute resolution, decriminalization measures, and overall tax reforms.