USIBC 2021-2022 Union Budget Recommendations
During 2020, the Government of India (GOI or Government) is to be commended for its decisive and comprehensive actions in response to the COVID-19 pandemic. As a result of these continued efforts, India has been successful in avoiding the worst of the devastating toll that the virus is imposing on the health and economies of so many nations. The Government has also implemented a series of reforms to support the Indian economy and its citizens through the negative impact of the health measures implemented to contain the virus. While these measures have enabled many companies, both large and small (and the workers that depend on them), to survive the economic downturn and remain viable entities, an aggressive path for reform is required to reverse the economic downturn and power the Indian economy’s return to its full strength as a regional and global powerhouse. As a result, India’s Union Budget for 2021-2022 takes on even greater importance as policymakers deliberate on the particular calculus required to promote investment, reinvigorate all industry sectors – both the hardest hit due to the pandemic as well as the fastest-growing – protect and create new jobs, and move aggressively towards a long-term strategy for growth. USIBC and its members share the Government’s goals for economic growth for all sectors of the Indian economy and for all its citizens. Member companies remain committed to their investment in India as well as the health and safety of their workers. They seek to work in collaboration to realize the shared vision of a vibrant and growing Indian economy.
USIBC provides the following recommendations in partnership with Ernst & Young (EY) for the GOI’s consideration as its submission for India’s Union Budget 2021-2022. Part A outlines broader reforms to drive growth in the Indian economy. Part B outlines specific recommendations that impact the operational health, and therefore the potential for growth, of U.S. companies operating in India. Part B has three parts: Section I outlines recommendations for building a fair and transparent taxation, Section II provides sector-specific taxation to encourage investment and economic growth, and Section III provides detailed recommendations for foreign direct investment (FDI) policy. Click here to access the full report.