At a press conference in New Delhi, CII President Rajiv Memani said, however, he believes that geopolitical uncertainty could pose a downside risk to Indian economic growth.
Photo: ANI
The Confederation of Indian Industry (CII) sees India’s economy growing at a pace of 6.4-6.7 per cent in 2026-27, boosted by strong domestic demand.
At a press conference in New Delhi, CII President Rajiv Memani said, however, he believes that geopolitical uncertainty could pose a downside risk to Indian economic growth.
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India and the US are moving closer to finalising an initial phase of the bilateral trade agreement (BTA), but sensitive sectors and issues with deeper political implications may not be part of the immediate deal, CII President Memani said.
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“Level of preparation, engagement with India Inc has been detailed. Confident that India Inc challenges will be adequately addressed. We will not have 100 per cent winners, FTA will be done in phases, so tricky areas with greater political ramifications will be dealt with later. Hoping to get a satisfactory deal,” he added.
Further, the CII recommends rate rationalisation from 5 slabs of current rates to three slabs on GST reforms. Essential items at 5 per cent, luxury and sin goods at 28 per cent, and a unified rate of 12-18 per cent for other items.
Other recommendations include streamlining of Input Tax Credit (ITC) to eliminate credit blockages, coordinating audits across states, and reducing litigation through a National Appellate Authority.
It also proposes bringing petroleum, electricity, and real estate under the GST ambit.
The CII also asked for direct tax reforms. The CII recommended implementing the Income Tax Bill to simplify processes and reduce litigation. Measures such as Advance Pricing Agreements and Dispute Resolution Schemes should be encouraged to avoid legal delays, the confederation said.
In the power sector, the CII advocated tariff rationalisation, digitisation of distribution, and improved grid transmission. Also, to reduce logistics costs, it is recommended to rationalise tariffs and develop railway freight corridors with port connectivity.
These reforms collectively aim to improve regulatory efficiency, reduce costs, and foster a more business-friendly environment across India.
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