60% assured of India growing by above 6.5% in FY23: Deloitte survey

21 Jan '23

2 min read

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Deloitte Touche Tohmatsu India’s pre-budget survey 2023 for India has found that about 60 per cent of respondent business leaders are confident about India growing by above 6.5 per cent in fiscal 2022-23 (FY23) and 73 per cent hopes the budget will fuel growth across industries by building strong domestic demand and focussing on capital expenditure.

More than 70 per cent respondents agree that various production-linked incentives (PLI) schemes have been beneficial for the growth of their sector, with close to 60 per cent respondents expecting an extension of the incentive in the coming years.

Amongst industrial sectors, chemicals (72 per cent), capital goods (70 per cent) and energy (67 per cent) expressed confidence in growth being high, and felt that government initiatives and favourable monetary policies by the Reserve Bank of India (RBI), increased spending on infrastructure and research and innovation will further this momentum.

Critical to this growth will be the pace of capital expenditure, infrastructure development, and the need to boost infrastructure financing through private partnership. Sixty per cent respondents suggested raising funds through government bonds. This proportion has increased by 12 per cent from the previous year’s survey.

Fifty-eight per cent respondents suggest that public-private partnership (PPP) should be encouraged to meet the funding gap and address issues that deter private participation, while bringing in innovative structures such as credit guarantee enhancement.

As global uncertainties and an economic slowdown loom across geographies, tax-related changes are expected to boost industry growth and are the most sought-after measures from the upcoming union budget. An overwhelming majority of respondents see trade treaties as vehicles for increasing investment flows and providing exchange of emerging technologies to strengthen their role in global value chains.

Besides easing tax compliance, 45 per cent respondents anticipate the government to reduce tax litigation, while 44 per cent expect to gain clarification of tax laws and provisions.

Additionally, the industry is expecting the simplification of the capital gains tax structure and removal of ambiguities in the interpretation of tax, thereby making compliance easier, Deloitte said in a press note.

Fibre2Fashion News Desk (DS)

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