Finance Minister Nirmala Sitharaman to Hold Pre-Budget Consultations with Industry Leaders on December 30

ENA Sectors 2024-12-26 17:22:41 New Delhi, Dec 26 (KNN) Finance and Corporate Affairs Minister Nirmala Sitharaman will engage with industry captains on December 30 for pre-Budget consultations, setting the stage for her eighth consecutive Union Budget, scheduled to be presented in February 2025. The meeting comes amid concerns of an economic slowdown following robust growth over the past three years. India's GDP growth has decelerated in the first half of the financial year, with restrictive fiscal and monetary policies compounding challenges. As global uncertainties persist—stemming from sluggish recoveries, geopolitical conflicts, and Chinas excess industrial capacity—the need for targeted measures to boost consumption and investment has taken center stage. Industry representatives are expected to propose a bold fiscal blueprint focused on consumption-led growth. With private investments showing signs of revival but not achieving broad-based momentum, a continued emphasis on public capital expenditure is anticipated. Industry bodies, including the Confederation of Indian Industry (CII) and the Federation of Indian Chambers of Commerce and Industry (FICCI), have called for significant increases in public spending on infrastructure, rural development, and social sectors such as healthcare and education. The CII has proposed a 25 per cent hike in public capital expenditure to Rs 13.9 lakh crore for 2025-26, while FICCI is advocating for a 15 per cent increase. These measures aim to sustain the capex-led growth strategy that has been a hallmark of recent Budgets. Industry leaders argue that infrastructure spending catalyses private investment and creates a multiplier effect on economic activity. Calls for fiscal prudence remain, with the CII urging adherence to the fiscal deficit glide path targeting 4.5 per cent of GDP by 2025-26. Measures to improve the ease of doing business, such as expanding the National Single Window System for regulatory approvals, are also expected to be high on the agenda. The meeting underscores the criticality of balancing immediate economic support with long-term growth strategies. As India seeks to achieve developed-nation status, industry representatives are pushing for policies that promote manufacturing, technology, green energy, and lower capital costs to ensure sustainable growth at 7.5 8 per cent CAGR over the next 25 years. (KNN Bureau) 40395 https://knnindia.co.in/news/newsdetails/sectors/finance-minister-nirmala-sitharaman-to-hold-pre-budget-consultations-with-industry-leaders-on-december-30 2024-12-26 17:22:41 knnindia.co.in Finance Minister Nirmala Sitharaman to Hold Pre-Budget Consultations with Industry Leaders on December 30