PHDCCI submits economic memorandum to Fin-Min ahead of Union Budget 2024-25

The memorandum incorporates suggestions gathered through surveys, analysis, and inputs from PHDCCI members across the nation.

According to the memorandum by the chamber, at the heart of the recommendations lies the recognition of the global economic landscape’s challenges, marked by geopolitical uncertainties, high interest rates, and a decelerating world economic growth rate.

To counter these challenges, the PHDCCI proposes calibrated measures to boost domestic sources of growth, ensuring a sustained higher economic growth trajectory for India. The PHDCCI memorandum highlights the nation’s commitment to a green economy, as evidenced by the Union Budget for 2023-24. It emphasises renewable energy, reduced reliance on fossil fuels, and sustainability, aligning with the target of achieving net-zero carbon emissions by 2070. Calibrated steps are underway to transform India into a green economy.

Streamlining approval processes, maintaining regional balance, and simplifying sector-specific foreign direct investment (FDI) policies are recommended to encourage investment .

India’s emergence as a global startup hub, boasting over 100 unicorns, is celebrated in the memorandum. However, it calls for enhanced support in terms of access to the Government e-marketplace (GeM), technology, AI-based development, and a strengthened incubation framework. The memorandum recognises the logistics sector as the backbone of India’s economy, advocating for advanced technology applications like IoT, automation, blockchain, cloud computing, AI, and robotics to improve logistics development.

The MSME sector’s development, improvement of value chains, and increased access to capital are deemed critical for their contribution to India’s economic growth. Prioritising digital infrastructure, literacy, and skill development is recommended to propel the services sector, particularly software exports, further.

The memorandum underscores the importance of rural infrastructure, private sector participation, and waste reduction in agriculture’s growth.

Infrastructure development, across sectors, is emphasised as vital for India’s overall economic growth, with a suggested investment of at least 10 per cent of GDP.

The PHDCCI’s memorandum outlines a comprehensive roadmap to navigate the challenges and capitalise on opportunities for sustained economic growth, urging the government to consider these recommendations in the upcoming Union Budget for 2024-25.