Srivats Ram, Chairman of the CII (Confederation of Indian Industry) Tamil Nadu State Council, said that introducing some key measures such as reducing income tax rates for the sub-₹20 lakh category, increasing infrastructure spending, focusing more on manufacturing jobs and adopting an MSME-friendly approach, in the upcoming Union Budget will greatly contribute towards sustainable economic growth and job creation. “This government has excelled in building good infrastructure and executing projects effectively,” Ram stated in a discussion with The Hindu Group of journalists.
While the interim Budget saw a 16 per cent increase in infrastructure spending, the CII recommends a 25 per cent increase. This should include investments in rural infrastructure, warehousing and irrigation canals to address the issues in rural areas.
Onus on job creation
Given the current inflation levels, lowering the tax rate for those earning under ₹20 lakh would significantly boost consumption, he said. Ram also emphasised the importance of boosting manufacturing for employment generation. He suggested that beyond the current Production Linked Incentive schemes, which promote technology-based manufacturing, there should be employment-oriented incentive schemes in sectors like furniture, toys, textiles and hospitality. “While India has performed well recently, job creation remains a concern,” he added.
Support for MSMEs
Supporting MSMEs is another critical area. Although the government has made significant efforts, it needs to be more friendly towards MSMEs on credit facilitation and GST practice. These two areas need serious attention for improving the ease of doing business for MSMEs.
He stressed the need to increase spending on education and healthcare. “Education spending should rise to 6 per cent from the current sub-3 per cent levels,” Ram said. He pointed out that while States like Tamil Nadu perform better than others, many parts of the country still face logistical challenges in accessing healthcare, especially primary health centres. Increased investment in these areas will lay the foundation for long-term progress.
He discussed CII Tamil Nadu’s initiatives such as Green Tirupur and sustainable manufacturing, which aim to promote sustainable practices and improve societal perceptions in these sectors. Additionally, CII has formed new task forces for labour-intensive industries, including chemicals, non-leather footwear, banking, financial services, insurance, electronics and Global Capability Centres, to further support and develop these sectors.