The upcoming ‘Budget 2020’ is highly critical for the economy. It is expected to ensure a galvanising role in uplifting the economy from a demand recession and liquidity crunch.
As a part of pre-budget recommendations, CMD of Hiranandani Communities and Assocham President, Dr Niranjan Hiranandani said that some bold measures in key areas of concerns will help to revive the economy and help achieve the target of a $5 trillion economy in the next few years.
Some of the key recommendations by the body are:
1. Reduce GST rates by 25 per cent across the board for the next six months to boost investment and demand.
2. A time-bound policy to digitize the land records along with faster allotment of land/sheds/warehouse obtained from the government.
3. A dedicated index of MSME’s Ease of Doing Business, financial incentives or tax rebate for those MSME that provide a high level of employment.
4. A 10-year tax holiday for real estate developers on profits earned from rental housing. Alternatively, income from renting of house properties must be taxed at a flat rate of 10 per cent.
5. An urgent need to create a professional panel to address the liquidity crunch of most NBFCs which has a direct impact on the economic activities, resulting in financial pressure and slowing down of businesses.
6. To strengthen domestic manufacturing, import substituting products which attract new investments for manufacturing in India to be kept outside the ambit of the free trade agreement.
7. Seeking zero customs duty on 4G/5G network products to revive the telecom sector.
8. To revive the real-estate sector, banks and financial institutions should be given discretion to one-time restructuring and/or rollover of their existing loans to the sector on the lines of loans to other segments.
Overall, some key fiscal incentives, sustained public investment and a set of focused measures on labour-intensive sectors such as tourism, textile, housing and infrastructure may steer growth.
You can read the entire and detailed set of recommendations here.