There is good news for India on the economic front. Industry body PHD Chamber of Commerce and Industry (PHDCCI) says the Indian economy could grow at a pace of 6.8% this fiscal year and 7.7% in the next fiscal year. PHDCCI estimates that by 2026, India will overtake Japan to become the world’s fourth largest economy.
Relief may be available from RBI
According to PHDCCI President Hemant Jain, the Indian economy has grown strongly in the last 3 years and by 2026 it may overtake Japan to become the world’s fourth largest economy. PHDCCI believes that the Reserve Bank of India (RBI) may announce some cuts in policy interest rates in February, as there are signs of softening in the inflation rate.
This is what is expected from the budget
Regarding the budget to be presented on February 1, the industry body said that emphasis should be laid on provisions to boost consumption by putting more disposable income in the hands of people. The highest rate of income tax should be applicable only to individuals with income above Rs 40 lakh and the income tax exemption limit should be increased to Rs 10 lakh.
inflation will reduce
At the same time, PHDCCI Deputy General Secretary SP Sharma said that in the next review of RBI, the policy interest rates should be reduced by 0.25 percent. Retail inflation has eased, but prices of some food items are still high. However, we expect retail inflation to fall to between 4 and 2.5 percent in the coming days.
Gave suggestions to the Finance Minister
SP Sharma further said that in the budget we have proposed to increase the income limit for the maximum rate of income tax from Rs 15 lakh to Rs 40 lakh. Today Rs 15 lakh is a moderate income and we are taxing it the most. This needs to change. Apart from this, PHDCCI has also suggested to reduce the tax rate on entities working under proprietorship or partnership and LLP from 33% to 25%.
good times are ahead
PHD Chamber of Commerce and Industry says that, at a time when many major economies of the world are facing crisis, India has made remarkable progress. The coming times are good for the Indian economy. It is likely to grow at the rate of 6.8 percent in the current financial year and 7.7 percent in 2025-26.
