By Admin 
India GDP Growth: Industry body Confederation of Indian Industry (CII) has urged the government to maintain the pace of economic growth of the country, stating the need to lay special emphasis on institutional reforms and fiscal strength in the upcoming Union Budget. The strategy prepared by CII to strengthen India’s macroeconomic stability is based on key pillars such as debt sustainability, fiscal transparency, revenue mobilization and expenditure efficiency.
Fiscal management should get priority
According to news agency PTI, CII Director General Chandrajit Banerjee said India has achieved a rare balance of high growth rates, controlled inflation and good fiscal indicators, to maintain which disciplined fiscal management and deep institutional reforms should be given priority in the Union Budget for 2026-27 to be presented in February.
Emphasizing the need to increase the tax-GDP ratio, the industry body said that at present this ratio including the Center and the states is about 17.5 percent, whereas it is necessary to increase it further to meet the developmental needs of the country. CII recommended state-of-the-art data analytics techniques to detect tax evasion, linking tax returns to high value transactions and better use of data derived from India’s strong digital infrastructure to expand the tax base as well as reduce compliance costs.
Rolling roadmap for 5 years
To keep debt manageable, CII stressed the need to adhere to the framework of limiting government debt to about 50 percent of GDP by FY 2030-31 and advised adopting a three- to five-year ‘rolling roadmap’ for revenue, expenditure and debt, so that the medium-term fiscal framework can be strengthened.
Along with this, it was suggested to institutionalize a fiscal performance index to assess the quality of public finances of the Center and the states, so that better performing and reform-oriented states can be encouraged.
CII recommended adopting a phased approach to disinvestment, gradually reducing the government’s stake in public sector undertakings, first to 51 percent and later to 26 to 33 percent, while simultaneously continuing efforts for full privatization.
Under expenditure management, with particular emphasis on subsidy reforms, the industry body pointed out the challenges associated with the PDS such as outdated data and black marketing and the need to use digital tools to prioritize and monitor high-impact sectors such as education, health, skill development and climate change resilience, thereby ensuring better outcomes as well as financial savings.
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