NEW DELHI, Jan 31: Leading industry associations have praised the Economic Survey 2024-25, expressing their satisfaction with the government’s focus on “deregulation” and its commitment to improving the ease of doing business in India.
In response to the Survey presented in Parliament earlier today, Harsha Vardhan Agarwal, President of FICCI, remarked, “It is encouraging to see the Economic Survey’s emphasis on ‘deregulation’ and the ongoing agenda to facilitate business operations in our country. The survey underscores the importance of enabling businesses to concentrate on their core missions, which is a significant contribution that governments can make to stimulate innovation and boost competitiveness.”
FICCI believes that by streamlining regulations and eliminating outdated rules, the cost of doing business can be significantly reduced, thereby enhancing investment opportunities and promoting overall growth.
“Moreover, we’d like to emphasize that effective regulatory reforms require the proactive involvement of state governments, whose role in improving the business environment is increasingly critical,” he added.
Similarly, ASSOCHAM highlighted that the Economic Survey has effectively made a strong case for additional economic reforms, especially at grassroots levels, to accelerate India’s growth trajectory amidst a challenging global landscape.
“The projected GDP growth rate of 6.3-6.8% for 2025-26 is realistic, and there is a reasonable chance of achieving the upper end of that range. Notably, the Economic Survey’s focus on deregulation and grassroots reforms—particularly for MSMEs—stands out,” stated Sanjay Nayar, President of ASSOCHAM.
The key government document strongly urges states to undertake reforms in the legal framework concerning land, labor, and construction, emphasizing that these are foundational areas influencing significant business decisions, according to ASSOCHAM.
Furthermore, the survey points out the necessity of enhancing the competitiveness of the manufacturing sector. FICCI advocates for increased investment in R&D and innovation within the country. Additionally, creating a robust ecosystem for domestic manufacturing by prioritizing Production Linked Incentives for key sectors is essential.
The Economic Survey has referenced FICCI’s report that shows how PLI schemes have encouraged the development of comprehensive value chains.
On the GDP growth outlook, Agarwal from FICCI commented, “While the growth forecast is slightly lower than our own projection, we anticipate that the Union Budget on Saturday will stimulate both consumption and investment demand. We are hopeful for a rationalization of the tax structure in the budget to increase disposable income for consumers, encouraging greater discretionary spending.”
Addressing food inflation is also vital. FICCI agrees with the Economic Survey’s recommendations for developing climate-resilient crop varieties, improving agricultural yields, and implementing robust data collection and analytical systems for integrated monitoring of the agricultural ecosystem.
This aligns with FICCI’s proposal to establish a Food Inflation Response and Strategy Team (FIRST) to create an e-enabled coordination framework, accompanied by a global market intelligence system for better forecasting and planning.
The Economic Survey emphasizes the importance of balancing energy transition with energy security. FICCI concurs with the Survey’s analysis and recommendations to reduce dependence on imports of critical items from a single source.
Developing the domestic ecosystem for industries like electric vehicles (EVs), solar energy, and wind energy is essential to achieving our long-term goals for a low carbon growth trajectory.
(UNI)
