Business leaders in India are optimistic about achieving a USD 5 trillion economy through business expansion and foreign investments but for that 80 per cent of business leaders said continuity of tax certainty is necessary. As per online surveys with senior leaders across seven sectors, Deloitte Touche Tohmatsu India LLP (DTTILLP) found that to achieve the USD 5 trillion goal soon, budget announcements should centre around infrastructure investments, focus on sustainability and ESG, enhanced technology adoption and Foreign trade agreements (FTAs).
A crucial aspect highlighted by the survey is the need for tax certainty to ensure sustained business expansion. “Stable tax policy and administration continue to be a key ask from businesses to ensure sustained business expansion and more foreign investments into the country. A consensus amongst over 80 per cent of the leaders underscores the importance of tax certainty to foster the growth of both large and very large corporates. Furthermore, 85 per cent and 82 per cent of respondents, respectively, highlight the overarching impact of frequent tax changes on corporate strategies,“ the release said.
Overall the businesses applaud the increased certainty in tax that also helped attract more investment. In addition, they yearn for tax predictability as they feel it will be a catalyst to foster growth.
Leaders from the Automotives sector, Financial services, technology and media said that the main impediment to the growth of the industry is frequent taxation changes.
According to online surveys conducted with senior leaders about 50 per cent of corporate leaders expect India to achieve above 6.5 percent growth in FY2025. Nearly 80 per cent of leaders in automotive, consumer and retail anticipate a growth rate above 6 per cent.
Among sectors, automotive (50 per cent), consumers and retail (66 per cent), and technology, media, and telecommunication (47 per cent), anticipate high growth.
ESG initiatives may remain a priority in the budget with 100 per cent of respondents concurring on the importance of renewable energy. Business leaders expect the government to prioritise investing in ESG strategies and initiatives followed by technological innovations, infrastructure development, and also skill enhancement.
However on the budget, while over 70 per cent of large businesses are optimistic, around 13 per cent hold a negative outlook, driven by inflation concerns and political transitions expected ahead.
Improved credit availability is identified as one of the top three growth factors, with sectors like automotive, energy, resources, and industrials strongly voting for it.