What Indian industry wants from Modi's budget after poll setback
budget in mid-July after a shock election outcome in which Modi failed to win a majority and has returned to power with the help of allies.
The budget, Modi's first major policy announcement in his third term, is expected to lay out possible changes to India's economic priorities for the next five years, the tenure of the coalition government.
Indian Finance Minister Nirmala Sitharaman is considering lowering personal tax rates for certain categories of individuals while sticking to the nation's fiscal deficit target for the year, government sources have said.
Here are some key demands by various industry bodies for the budget.
CONSUMPTION BOOST
The government should consider tax cuts in India's lower income brackets to leave more money in the hands of people, the Confederation of Indian Industry (CII) lobby group said, to support consumption.
While the Indian economy grew at a world-beating 8.2% in 2023-24, consumption has grown at half that pace. CII said the government should offer a higher wage in its only rural job guarantee scheme and increase cash handouts to farmers.
FARM EXPORT RESTRICTIONS
India should lift its restrictions on exports of farm products such as rice, wheat, sugar and onions to support farmers' incomes, agricultural economist Ashok Gulati and several farm bodies said after a pre-budget consultation meeting with Sitharaman.
To hold down consumer prices, Modi's administration started clamping down on export of such staples in 2022, and also lowered tariffs on pulse and vegetable oils
