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Budget - FICCI seeks platforms on lines of GST Council for reforms
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Tuesday, 14 January, 2025, 08 : 00 AM [IST]
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Ashwani Maindola, New Delhi
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As the budgetary preparations are on for the Union Budget 2025-26, expectations are high to get a boost for economy for the new fiscal that will start from April this year.
In this regard, the industry expects the Government to implement next generation reforms.
To begin with, FICCI in its recommendation has urged the Union Government to create inter-state institutional platforms on the lines of GST Council, especially for reforms in areas of land, labour and power.
Further, FICCI submitted to the Finance Ministry that the Government has made a good start to the simplification process by reducing the TDS rates on several payments from 5% to 2% through Finance (No.2) Act 2024.
"To further enhance ease of doing business, it is suggested to rationalise the multiple TDS/TCS rates by converging them into a simple two or three-tier rate structure which will avoid classification disputes and prevent blockage of working capital in the industry. Also, stop the practice of imposing TDS/TCS on transactions that are subject to GST since the relevant information is already available through GST filings," reads FICCI's recommendation.
Randhir Chauhan, MD, Netafim India, opined that the Union Budget 2025 presents a pivotal opportunity to reshape India’s agriculture sector by prioritising innovation, sustainability, and efficiency. Focused investments in infrastructure, water efficiency, and technological innovation, combined with supportive policies, can unlock significant growth potential for farmers. These measures will not only enhance agricultural productivity but also drive broader economic progress, contributing to a more resilient agricultural future for India.
"Granting infrastructure status to the micro-irrigation industry will help the sector and allied industries to flourish, which is predominantly made up of MSMEs, accounting for 95% of the overall agri sector. It can substantially reduce operational costs, lower equipment prices, and drive expansion. Integrating renewable energy, such as solar installations, with micro-irrigation systems can further enhance energy efficiency, cut costs, and boost profitability for farmers," said Chauhan.
He further suggested that since India’s agricultural R&D investment is currently below 1% of its Agri-GDP, this needs urgent redressal. Allocating more funds to the Agri Innovation Fund would stimulate agri-tech startups, foster digital solutions, and promote the adoption of smart farming, precision agriculture, and cutting-edge irrigation technologies.
Expectations -
Pankaj Prakash Sharma, founder & CEO, Happa Foods
The food processing industry in India is at a pivotal point, driven by rising consumer demand for sustainable, organic, and nutritious products. As we approach the new Budget, we anticipate comprehensive policies that will foster innovation, boost investment in agricultural infrastructure, and provide easier credit access for MSMEs. We expect the government to introduce targeted subsidies and incentives to attract both domestic and foreign investors, fostering growth in the sector. Additionally, policies that enable banks and financial institutions to offer lower interest rates and longer repayment periods for food processing enterprises can significantly alleviate financial constraints, especially for small and medium enterprises.
On the export front, we look forward to initiatives that reduce bureaucratic hurdles, streamline export procedures, and provide incentives for exporters to tap into global markets. Enhancing India's food export capacity through dedicated trade agreements, improved logistics infrastructure, and quality certification support will open new avenues for growth. Combined with efforts to simplify GST structures, strengthen the farm-to-fork supply chain, and promote domestic consumption, these measures will be pivotal in transforming the food processing industry into a major contributor to India’s economic development.
Tarun Gulati, director, Himalayan Hotels
As we look ahead to the 2025-2026 fiscal year, the hospitality industry must focus on building a $3 trillion tourism economy and welcoming 100 million international visitors annually by 2047. To achieve this ambitious goal, sustainability and technological advancements must be prioritised.
Simranjeet Singh, director, CYK Hospitalities
"The upcoming Union Budget 2025 is expected to have reforms for innovation. For start-ups and food and beverage (F&B) sectors, there is also great hope for simplified taxation, namely GST rate cuts on small eateries and essentials-those will ease financial stress."
Nidhi Singh, co-founder, Samosa Singh
"Being a F&B brand dedicated to prioritising quality and innovation, we look forward to the Union Budget 2025 reforms that may vicariously fuel the growth of startups pertaining to the former. Swiftly approved policies that would potentially simplify taxation, and promote sustainable business practices can act as promoters for escalating startups like ours.
Vikesh Shah, founder, 99 Pancakes
"We are hopeful about the Union Budget 2025 to address key growth enablers for our F&B Industry. This sector has been brawling with inflating operational & input costs. With a reduction in GST on dining services along with a tax alleviation on sustainability packaging could be of crucial assistance."
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