Budget 2024 expectations: India must continue its capex push, Ficci says in its recommendations

economictimes.indiatimes.com:

Interim Budget have been robust, but in view of the current global headwinds the govt would need to continue its thrust on public capex, Ficci said in a note on January 24.

There is a need for an «Indian Taxonomy» comparable and interoperable with global taxonomies, frameworks and principles, it said, adding that evaluating exposure to sustainable versus non-sustainable activities is difficult for banks and other financial institutions without a taxonomy.

China plus one: Given the current global business dynamics and most advanced economies looking at China plus one strategy, India has a big manufacturing opportunity knocking at its doors. India must keep making efforts to become a global manufacturing hub by incentivising and attracting large investments from global manufacturing companies, Ficci said in its budget recommendations.

PLI scheme: While the Production Linked Incentive (PLI) schemes have worked well, the government could look at extending the concessional tax regime for manufacturing operations for at least five years, Ficci recommended. Given that many global investors are lookingn to put money to work in India, extending these concessions will boost investor confidence further, it said.

• Budget 2024: India's job story has a major missing part

  Apparel exporters seek tax incentives in Budget 2024 to boost manufacturing

  The near-term risk factor India shouldn't ignore in Budget

  A cheer for economy may keep big Budget splurge away

It is universally believed that the key driver for economic growth is innovation. Countries across the world are therefore providing various incentives to encourage innovation and R&D under different tax policy measures like Patent Box Regimes, weighted