Trade, industry want tax sops for R&D, blockchain based portal for compliances

Higher deduction on R&D Lexpenditure to boost innovation, an indigenous shipping line to save logistics cost, extension of interest equalisation scheme for a period of 5 years, better availability of cotton for textiles sector, technology mission on cotton 2.0 with special focus on seed technology are the key proposals put forward by the trade and services sectors as well as industry chambers to Finance Minister Nirmala Sitharaman for the general Budget in July.

- NIVEDITA MUKHERJEE

Presenting the external landscape, FICCI observes that exports are yet to gain momentum on a sustained basis to a level which drives capacity utilisation and fresh investments in associated sectors. Even though world trade growth is expected to witness some recovery in 2024, FICCI expects growth to remain below the longterm average of 4.2 per cent seen between the years 2006-2015. The world trade volume is expected to increase by 3.0 per cent in 2024 and 3.3 per cent in 2025 (vis-à-vis 0.3 per cent in 2023), says the FICCI pre-Budget note.

In that context, FICCI makes a strong case for providing thrust to exports at a time when, India has set for itself an ambitious target of achieving USD 1 billion of exports each for goods and services by 2030, the country's India's external engagements are increasing via FTAS/CECAs and third, there is need to improve efficiency of cross-border trade infrastructure to ensure that no taxes get exported. The industry body has sought revision of rates of duty drawback and RoDTEP to make Indian exports competitive while ensuring that the revised rate structure is WTO compliant.