Menu

PHDCCI

indian rupee

PHDCCI Seeks Support For Tourism Sector In Forthcoming Union Budget

, ,

Through a memorandum, PHDCCI presents suggestions for the tourism sector, which suffered a major setback during the covid period. According to Invest India (National Investment Promotion & Facilitation Agency), the travel market in India is projected to reach USD 125 billion by FY27, from an estimated USD 75 billion in FY20

With the Annual Union Budget all set to be presented on 01 February 2023, the PHD Chamber of Commerce & Industry released a pre-budget memorandum. The memorandum suggests five-pronged strategies to revitalize private investments along with taxing real income and not notional income and support to industries that suffered majorly because of covid. It also asks for rationalization of multiple GST Rates into 2-3 tier GST rates and decriminalization of offences in GST Law by increasing threshold from Rs. 5 Crore to Rs. 20 Crores.

The memorandum also has suggestions for the tourism sector, which suffered a major setback during the covid period. According to Invest India (National Investment Promotion & Facilitation Agency), the travel market in India is projected to reach USD 125 billion by FY27, from an estimated USD 75 billion in FY20.

The Agency claimed that in FY20, the tourism sector in India accounted for 39 million jobs, which was 8.0 per cent of the total employment in the country. By 2029, it is expected to account for about 53 million jobs.

The memorandum states, “Tourism sector is a major engine of economic growth and an important source of foreign exchange earnings in many countries including India. The sector provides opportunities to skilled as well as unskilled job seekers, thereby, providing employment to all sections of society.”

It further adds, “In India, the majority of the travel and tourism industry is composed of MSMEs. In this regard, the development of tourism infrastructure is of paramount importance and should be accorded priority to provide a better experience, facilities and safety to the tourists and thereby enhance employment creation in the country and facilitate the growth of MSMEs.”

According to the industry forum, 2023 is going to play a crucial role in rejuvenating the tourism sector which would be able to earn desirable revenue again.

economy

Job Creation, Steps To Broaden Tax Base Should Be Budget’s Focus: India Inc

, , , , , , ,

The virtual pre-Budget meeting was called for an aggressive focus on privatisation of public sector units and increasing allocation to capital expenditure

The focus of upcoming budget should be on measures to boost job creation and widen the tax base by rationalising GST and personal income tax slabs. This will enhance the consumption, said the industry bodies during their pre-Budget meeting with finance minister Nirmala Sitharaman on 21 November.

The president of CII (Confederation of Indian Industry), Sanjiv Bajaj said that the external scenario may continue to remain unfavourable for some time. Therefore, we need to broaden the base of our domestic economy. This can be achieved by creating new sectors of growth and driving employment generation to enhance domestic demand, inclusion and growth.

The virtual pre-Budget meeting was called for an aggressive focus on privatisation of public sector units and increasing allocation to capital expenditure. This is to be done with an aim on an investment-led growth strategy to lift India’s economy amidst the global uncertainty.

The CII forming part of the virtual meet suggested that an employment linked incentive scheme maybe introduced and consideration of an urban employment guarantee scheme and initiate a pilot in metro cities first in this budget, is what the government could do to boost job creation.

Another important industry body PHDCCI (The PHD Chamber of Commerce and Industry) too submitted its suggestions for the Budget to the finance minister virtually on 21 November.

A five-pronged strategy in order to revitalise the private investments through measures to boost consumption, increase capacity utilisation in factories, increase job creation, improve social infrastructure quality and accelerate economic growth of India, formed part of the suggestion.

The president of PHDCCI, Saket Dalmia in a statement said that the union budget 2023-24 is being presented amidst at a crucial juncture where exists geo-political uncertainties, high inflation and slowing world economic growth. At this point, in order to boost domestic sources of growth, calibrated steps would be important to maintain the steady economic growth trajectory.

5Hur9U0e_400x400

Inflation In India May Fall Below 6% By Dec 2022: PHDCCI

, , , , , ,

Various other economies in the world were more aggressive at increasing the policy rates like Canada rose the policy rates by 300 bps, following the same US hiked by 275 bps, Australia by 250 bps, UK by 175 bps, South Africa by 225 bps and Euro Area by 200 bps, said the PHDCCI. The government has taken calibrated efforts and the Reserve Bank of India (RBI) too have significantly impacted in escalating the wholesale prices, said the president of the industry body

The wholesale price index (WPI) inflation has come down to 10.7 per cent in September 2022 from 16.2 per cent in June 2022 being the highest, said Saket Dalmia, the president of PHD Chamber of Commerce and Industry, on 3 October.

The government has taken calibrated efforts and the Reserve Bank of India (RBI) too have significantly impacted in escalating the wholesale prices, said the president of the industry body.

Dalmia said that although RBI too decision to increase the repo rate tame the inflation by 190 bps in last six months from 4.4 per cent in May to 5.9 per cent in October, gross domestic product (GDP) growth rate too has also been maintained with a lesser deceleration in comparison with many economies.

Various other economies in the world were more aggressive at increasing the policy rates like Canada rose the policy rates by 300 bps, following the same US hiked by 275 bps, Australia by 250 bps, UK by 175 bps, South Africa by 225 bps and Euro Area by 200 bps, said the PHDCCI.

Canada could bring down the inflation rate by 120 bps by taking the repo rate up to 300 bps. The US too is able to soften the inflation rate from 9.1 per cent to 8.2 per cent by hiking the Federal Reserve rate by 275 bps. South Africa on the same lines is able decrease the inflation rate from 7.8 per cent to 7.5 per cent by putting a surge in the policy rate by 225 bps, said the industry body. India is able bring the inflation rate by 0.4 per cent from 7.8 per cent to 7.4 per cent by taking the policy rate up by 190 bps, said PHDCCI.

The industry body said that the government’s move towards calibrated steps and RBI would play crucial role to bring down inflation in the targeted trajectory along with maintaining economic growth nearly by 7 per cent in the current fiscal,

PHDCCI said that WPI inflation will continue to witness the deceleration and will have a prominent impact on the price corrections in the retail inflation. Expectedly the Consumer Price Index (CPI) inflation may come down to below 6 per cent by December 2022.

Further, along with bringing the petroleum products under purview of GST, further cut in the excise duties will occur specifically on petroleum products.

The industry body said that in order to stabilise inflation trajectory in the targeted bracket of Reserve Bank of India, the measures to prevent hoarding of the essential commodities to stop price accelerations would be done. Also, the steps would be undertaken to strengthen the global value chains and shift the sources of the imports from higher price countries to low price countries.

economy

Indian Economy May Witness Growth At 6-7% In FY23: PHDCCI

, , , , , , , , ,

Industry chamber PHDCCI said following the current trend, expectedly the Indian economy may grow at 6-7 per cent in the current fiscal year. The chamber has identified 75 potential products which will help India achieve the trade target of USD 750 billion by 2027

Industry chamber PHDCCI said following the current trend, expectedly the Indian economy may grow at 6-7 per cent in the current fiscal year, on 12 October. Newly appointed president Saket Dalmia said a bounce in the production is noticed and there exist a “big” demand across the nation. 

This statement came a day after the International Monetary Fund (IMF) reduced its economic growth forecast for India to 6.8 per cent in 2022. 

Also, recently the Reserve Bank of India reduced the economic growth projection for FY23 to 7 per cent from 7.2 per cent as estimated earlier. The estimation changed due to extended geopolitical tensions and aggressive monetary policy tightening globally. 

The chamber has identified 75 potential products which will help India achieve the trade target of USD 750 billion by 2027. Exports of the products such as agriculture and chemicals will be promoted across 75 countries like the US and Europe, said Dalmia.

He said that market in countries like the US, Canada, Germany, France, the UK, Japan, the UAE, and China, among others would majorly be focused markets in order to boost exports of such goods. The other category of products includes textiles, auto, and pharmaceutical items. 

“Right now, we have focused on exporting 75 products to 75 potential countries in 75 months which enable India achieve a trade target of USD 750 billion by 2027,” Dalmia informed the media persons. 

The MSME sector has key challenge to meet which is cost of capital and the RBI and the government has been requested by the chamber to look into such issues, said Dalmia.

Biggest challenge is access to capital and the cost which the banks have “not done anything or not enough” at this front, he added. 

The new president informed that

a centre for innovation in green hydrogen will be set up by the chamber, informed the newly appointed president.

“A new initiative to facilitate women start-ups is being planned by us. This is to increase contribution of women-owned business within the economy,” he added.

economy

Indian Economy Likely To Grow At 6-7% In FY23: PHDCCI

, , , , ,

The Reserve Bank of India (RBI) also has slashed India’s growth projection for FY23 to 7 per cent from 7.2 per cent due to aggressive monetary policy tightening all around the globe

Going by the current trends, the Indian economy is likely to grow at 6 to 7 per cent in financial year (FY) 2023 amid ‘big’ demand, said the PHD Chamber of Commerce and Industry (PHDCCI) on Wednesday.

Post Covid-19 pandemic, the production has bounced back and there is a “big” demand in India, said Saket Dalmia, President of PHDCCI.

However, amid the ongoing Ukraine crisis, the International Monetary Fund (IMF) on Tuesday slashed its projection of India’s economic growth in 2022 to 6.1 per cent. However, its growth is estimated to be the fastest among major economies.

The Reserve Bank of India (RBI) also has slashed India’s growth projection for FY23 to 7 per cent from 7.2 per cent due to aggressive monetary policy tightening all around the globe.

PHD Chamber has found around 75 potential products like chemicals and agriculture to promote their exports in about 75 nations such as the United States (US) and the crisis hit Europe to achieve trade the target of USD 750 billion by 2027, Dalmia said.

“We cannot realise our ambition of becoming a developed nation by 2047 without the active contribution of women-owned businesses. We are planning a new initiative on facilitating women start-ups and aligning our thought leadership with the PM’s vision of Nari Shakti driving the Indian economy,” added Dalmia.

economy 2

India’s Economic Recovery Gains Momentum In Recent Months: PHDCCI

, , ,

The drivers of household consumption need to be further strengthened to enhance the aggregate demand as it will have an accelerated effect on the expansion of capital investments

India’s economic recovery gained momentum in recent months on the back of rapid progress in vaccinations, festive season and consequent improvement in consumer and industry sentiments, industry chamber PHDCCI said on Sunday.

The PHDCCI Economy GPS Index for October 2021 increased to 131 as compared with 113.1 in the previous month. During the April-October 2021 period, it stood at 114.8 as compared with 78.7 in the previous financial year, the chamber stated.

However, its President Pradeep Multani said that at this juncture, there is a need to address the high commodity prices and shortages of raw materials to support the consumption and private investments in the country.

The drivers of household consumption need to be further strengthened to enhance the aggregate demand as it will have an accelerated effect on the expansion of capital investments, said Multani.

The PHD Chamber of Commerce and Industry (PHDCCI) Economy GPS Index is a composite index of three lead economic and business indicators with a base year at 2018-19=100, which measures the broad economic and business activity.

The PHDCCI Economy GPS Index, based on the monthly values of three high-frequency indicators viz., GST collection (Rs crore), passenger vehicle sales (units) and Sensex (daily average), helps to find the direction of the economy.

GST collections indicate the momentum of business activity, passenger vehicle sales is a broad indicator of demand activity in the economy and the movement of the Sensex indicates the mood of both domestic and foreign investors, the chamber said.

(PTI)

economy 2

Strong GDP growth expected in coming quarters: PHDCCI

, , , , ,

“The uptrend in the lead economic and business indicators in the recent months shows that the economic recovery is catching pace and strong economic growth is expected in the coming quarters,” said Pradeep Multani, President, PHD Chamber of Commerce and Industry (PHDCCI).

Industry chamber PHDCCI on Sunday said it expects strong GDP growth in the coming quarters with the economic recovery gaining momentum.

Out of the 12 lead economic and business indicators of QET (Quick Economic Trends), tracked by the industry body, nine have shown an uptick in the sequential growth for the month of September 2021 as compared to six showing the uptrend in August 2021.

“The uptrend in the lead economic and business indicators in the recent months shows that the economic recovery is catching pace and strong economic growth is expected in the coming quarters,” said Pradeep Multani, President, PHD Chamber of Commerce and Industry (PHDCCI).

However, he suggested, at this juncture, there is a need to address the high commodity prices and shortages of raw materials to support the consumption and private investments in the country.

GST collections, stock market, UPI transactions, exports, exchange rate, forex reserves, CPI inflation, WPI inflation, and unemployment rate have registered positive sequential growth in September 2021 as compared to August 2021, PHDCCI stated.

Besides, the unemployment scenario improved to 6.9 percent in September 2021 from 8.3 percent in the previous month.

“Stock Market (SENSEX -an average of daily close) have recorded the sequential growth of 6.4 percent from 55,238 in August 2021 to 58,781 in September 2021. GST collections registered the sequential growth of 4.5 percent from Rs 1,12,020 crore in August 2021 to Rs 1,17,010 crore in September 2021,” PHDCCI said.

Supply-side issues such as high input prices, shortages of raw materials, among others are impacting the production possibilities and reducing the price-cost margins of the businesses, said Multani.

He observed that the drivers of household consumption need to be further strengthened to enhance the aggregate demand as it will have an accelerated effect on the expansion of capital investments.

India’s economy grew by 20.1 per cent in the first quarter of 2021-22, helped by a low base of the year-ago period, according to the official data released in August.

PTI