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Factbox: India’s budget industry demands to be unveiled on February 1

MUMBAI, Jan 27 (Reuters) – India’s Finance Minister Nirmala Sitharaman is expected to reveal plans to accelerate economic growth through increased spending on infrastructure and healthcare when she presents the national budget for 2022. /2023 on February 1.

Businesses and industry lobby groups, who expect greater capital spending as the government seeks to create jobs, are also seeking tax breaks for industries such as autos, manufacturing and tourism, affected by the coronavirus pandemic.

Here is a wish list from industry groups:

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HEALTH AND PHARMACEUTICALS

The domestic pharmaceutical industry expects an increase in funding allocated to it, as well as a focus on policies to foster research and development.

REAL ESTATE AND INFRASTRUCTURE

As residential real estate demand gradually rebounds, real estate agents are looking for more consumer-friendly measures in the budget. Real estate companies want an increase in the ceiling for deductions on interest on mortgages, as well as more “affordable” housing in metropolises.

The government is now grouping houses costing less than 4.5 million Indian rupees ($59,000) in these cities into the ‘affordable’ category, leading to lower tax rates and interest rates on loans . Builders say the figure should be extended to 10 million rupees.

AUTOMOBILE INDUSTRY

Industry desires include tax cuts, as well as a uniform GST rate, export incentives, a boost in research and development efforts, increased domestic chip-building capabilities and investment in the development of infrastructure and the promotion of the ecosystem of electric vehicles.

AVIATION

The beleaguered aviation industry is vying for tax concessions and industry-friendly policies to recover from the massive impact caused by the still-raging COVID-19 pandemic.

TOURISM AND HOSPITALITY

Another big loser from the pandemic has been the tourism and hospitality industry, which is also seeking some form of income support from the government.

RETAIL

The retail sector is pushing to accelerate the adoption of a national retail policy to streamline the growth of all types of retail.

He also wants the status of an industry, with a reduced compliance and regulatory burden, as well as financial incentives for major projects.

BANKING

The industry is seeking details on imminent privatization plans for state-owned banks, as well as the operation and scale of the National Asset Reconstruction Company Ltd.

NON-BANKING FINANCIAL INSTITUTIONS

As non-bank financial companies have risen to account for 25% of Indian credit exposure, ratings agency ICRA expects the budget to revisit a permanent refinancing window for the sector from the central bank, or the creation of a body to act as a backstop for such ventures.

FINTECH

The government recently set up a fintech department and launched a Payments Investment Development Fund (PIDF) to encourage the growth of the industry.

Several companies have called for an expansion of the programs for micro, small and medium enterprises introduced during the pandemic, while some players also expect the government to increase credit guarantee for loans and grant tax exemptions.

($1 = 75.2700 Indian rupees)

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Reporting by Swati Bhat; Editing by Clarence Fernandez

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