About 91% of respondents to an India Inc survey by Deloitte said the package of measures announced by Finance Minister Nirmala Sitharaman under “Aatmanirbhar Bharat” had helped put the economy back on the path to recovery. That’s a jump from the 58% of respondents who favored the announcements before the last budget, the consultancy said in a statement.
“Some 91% of respondents (compared to 58% last year) believe that the ‘Atmanirbhar Bharat’ initiative, coupled with the RBI’s monetary policy actions, has helped to get the economy back on track. They expect that the Union budget for FY23 builds on this momentum,” said Deloitte.
However, only 18% of respondents who took part in the pre-budget survey are micro, small and medium-sized enterprises (MSMEs), a Deloitte spokesperson said. Most of the “Aatmanirbhar Bharat” measures announced by Sitharaman, from May 2020, targeted small businesses, including the credit guarantee scheme for MSMEs and loan schemes for tourism and other sectors which have been hardest hit by the Covid-19 pandemic. .
“Optimism and confidence reign among Indian businesses as more than 75% of respondents (up from 68% last year) were positive about India’s economic growth and expansion, despite the surge seen during the third wave of Covid-19,” he said. .
Deloitte said that according to the survey, respondents believed more investment in infrastructure was needed. About 55% of respondents said that additional tax incentives for long-term investors in the infrastructure sector could help promote growth in the country. Additionally, 45% of respondents said the budget should focus on announcing incentives to increase R&D spending.
“About 56% of respondents also believe that the PLI (production-linked incentives) program has been a game-changer, particularly for the telecommunications and technology industry, followed by the electronics, life and health,” he said. “Over 60% of business leaders believe that the PLI program will attract investors and increase manufacturing and exports, which will stimulate the growth of different sectors and the economy.”
Improving export competitiveness, establishing competitive import tariffs and reducing administrative inefficiencies were other expectations expressed by India Inc in the Deloitte survey. Nearly 35% of leaders surveyed want the EU budget to address the issue of extending credit support to MSMEs, as well as an accelerated program of divestment and asset monetisation.
“The economy has witnessed a steady recovery in FY22. The Indian economy will continue to witness the momentum of growth if the government is able to support the efforts to implement reforms such as the asset monetization for infrastructure growth and PLI programs,” said Sanjay Kumar, Partner at Deloitte India.