CII Commends Centre’s Fiscal Policy Ahead of Union Budget 2025-26

CII Applauds Central Government’s Fiscal Strategy Ahead of Union Budget 2025-26

In a recent statement, the Confederation of Indian Industry (CII) expressed its approval of the central government’s fiscal policy as the nation approaches the Union Budget for the financial year 2025-26. The CII highlighted the constructive measures taken by the government to bolster economic growth, enhance infrastructure development, and support various sectors of the economy.

The CII specifically noted the government’s focus on fiscal consolidation while ensuring that critical investments continue to flow into key areas. This approach is expected to create a conducive environment for both domestic and foreign investments, which is crucial for sustaining the momentum of economic recovery post-pandemic.

Key Highlights of the Fiscal Policy

The CII pointed out several aspects of the fiscal policy that are commendable:

• Infrastructure Investment: The government has prioritized infrastructure projects, which are essential for economic growth and job creation. Enhanced public spending on roads, railways, and urban development is anticipated to stimulate various sectors.
• Support for MSMEs: The measures aimed at supporting Micro, Small, and Medium Enterprises (MSMEs) have been crucial in promoting entrepreneurship and innovation. The CII encourages continued focus on this sector, which is vital for job creation.
• Tax Reforms: Simplifying the tax structure and improving compliance through digital initiatives have received positive feedback. The CII believes that these reforms will enhance the ease of doing business in India.
• Social Welfare Programs: The fiscal policy has included provisions for social welfare programs aimed at uplifting marginalized communities, which is essential for inclusive growth.

Looking Ahead to Budget 2025-26

As the Union Budget 2025-26 approaches, the CII urges the government to maintain its focus on fiscal prudence while addressing the pressing needs of the economy. They recommend that the government consider the following:

• Green Economy Initiatives: Investing in renewable energy and sustainable practices will not only contribute to environmental preservation but also create new job opportunities in emerging sectors.
• Digital Transformation: Continued investment in technology and digital infrastructure is essential for enhancing productivity and competitiveness among Indian businesses.
• Skill Development Programs: Fostering a skilled workforce through targeted training and education programs will be critical in meeting the demands of a rapidly changing job market.

The CII remains optimistic about the government’s ability to strike a balance between fiscal responsibility and economic growth as the nation prepares for the next budget. The organization believes that with the right policies in place, India can pave the way for a more resilient and prosperous economy in the coming years.

In conclusion, the CII’s endorsement of the central government’s fiscal policy reflects a broader consensus on the need for strategic planning and execution as India gears up for the Union Budget 2025-26. Stakeholders across various sectors are hopeful that the upcoming budget will address their concerns and set the stage for sustained economic growth.