FICCI highlights economic survey focus on deregulation and business ease

The Economic Survey 2024-25 has highlighted the need to improve manufacturing sector competitiveness, suggesting scaling-up R&D and innovation spend. FICCI has suggested the creation of a robust ecosystem for domestic manufacturing, emphasizing Production Linked Incentives (PLI) for critical sectors. The Economic Survey cited FICCI’s report on the development of a complete value chain through PLI schemes.

Commenting on the Economic Survey 2024-25 tabled in the Parliament, Harsha Vardhan Agarwal, President, FICCI, remarked on the focus on deregulation and ease of doing business. "It is heartening to note the emphasis the Economic Survey has placed on ‘deregulation’ and furthering the agenda of ease of doing business in the country. The survey has highlighted that allowing businesses to focus on their core mission is a significant contribution that governments around the country can make to foster innovation and enhance competitiveness. FICCI has been of the view that by simplifying regulations and doing away with old regulations, the cost of doing business in the country can be reduced significantly and this will promote investments and overall growth," he said.

Agarwal also stressed the importance of regulatory reforms requiring active participation of state governments, adding, “Further, we would like to mention that regulatory reforms require active participation of the state governments and their role in improving the business climate in the country is becoming increasingly important.”

Regarding the GDP growth outlook, Agarwal noted, “While the growth assessment is slightly lower than FICCI’s own assessment, we expect that the Union Budget tomorrow will provide impetus for both consumption and investment demand. We look forward to rationalization of the tax structure in the budget with a view to putting more money in the hands of consumers for greater discretionary spend.”

Addressing food inflation, FICCI concurs with the Economic Survey's suggestions for developing climate-resilient crop varieties, enhancing agriculture yield, and implementing robust data collection and analysis systems for agriculture monitoring. FICCI suggested creating a Food Inflation Response and Strategy Team (FIRST) mechanism for integrated monitoring and planning.

The Economic Survey focused on balancing energy transition while maintaining energy security. FICCI agrees with the Survey’s recommendation to reduce import dependence for critical items. Building the domestic ecosystem for industries such as EVs, Solar and Wind Energy is seen as crucial for meeting long-term low carbon growth targets.