Industry Leaders Seek Economic Boost in Pre-Budget Talks with Finance Minister

Industry representatives met Finance Minister Nirmala Sitharaman to request a reduction in indirect taxes and rationalization of duty structures. They emphasized the need for extending the Interest Equalization Scheme, reviewing tariffs on Chinese imports, and enhancing the safe harbour regime for global capability centers.

In a bid to invigorate the economy, industry representatives on Tuesday appealed to Finance Minister Nirmala Sitharaman for a reduction in indirect taxes and rationalization of duty structures.

During a pre-budget meeting, FIEO President Ashwani Kumar urged for the extension of the Interest Equalisation Scheme by five years, citing rising interest rates owing to an increased Repo rate from 4.4% to 6.5% in the past two years. Kumar suggested restoring subvention rates from 3% to 5% for MSME manufacturers.

Kumar also advocated for a world-class Indian shipping line to reduce dependency on foreign shipping lines and save foreign exchange. Addressing the nearly two-hour meeting, Ajay Sardana of Reliance Industries called for a review of tariffs on Chinese petrochem imports to curb dumping and boost domestic capacity.

Shree Cement Chairman HM Bangur recommended increased government capital expenditure for the cement industry, while Nasscom Vice President Ashish Aggarwal focused on simplifying the transfer pricing regime to benefit more companies.

Engineer, representing small and medium industries, sought relaxation in payment cycles and changes in MSME definitions and LLP tax rationalization.