UKIBC submits recommendations on behalf of members for India Budget 2022
By Kealan Finnegan
The UK India Business Council, together with UKIBC members, met with Chief Economic Advisor, Ministry of Finance, K V Subramanian, ahead of India’s Budget 2022.
Tuesday 16th November: UKIBC Executive Chair Richard Heald met with Dr Krishnamurthy Subramanian, Chief Economic Advisor, Ministry of Finance at the MoF headquarters to present the UKIBC’s submission to the Government of India. Richard was joined virtually by UKIBC members and Chief Economist, British High Commission to India, Natalie Toms, to hear from Dr Subramanian on the Government of India’s budget proposals and for businesses to share their recommendations towards a positive budget in February 2022.
At the roundtable, UKIBC members highlighted issues and made suggestions across telecommunications, defence and security, food and drink, and financial services. A wide of array of themes were covered such as sustainability, international procurement, technology transfers, and communication systems. Incentives, reductions, and developments were highlighted by businesses respectively with the aim of enhancing the policy and regulatory landscape and fostering investment flows between the UK and India.
As well as answering questions of businesses and welcoming their feedback, Dr Subramanian also outlined the Government of India’s commitment to international cooperation, referencing the misinterpretation of Atmanirbhar Bharat (self-reliant India), which has been viewed as protectionist by some international commentators. Rather, the CEA highlighted that achieving self-reliance will require healthy international competition and collaboration, and that his Government remains deeply devoted to openness and cooperation.
The UKIBC earlier presented two further submissions to the Department of Revenue, Ministry of Finance, on Monday 15th November in response to calls for suggestions for Budget 2022-23 regarding changes in direct and indirect taxes particularly concerning customs and excise duty.
UKIBC Executive Chair Richard Heald, said: “I am delighted to support our members today for constructive dialogue between business and government towards the Indian Budget 2022. Business to Government dialogue is critical to a successful economy and cooperation between the public and private sectors so we welcome the Government of India’s appreciation and recognition of business views. The remarks made at today’s roundtable were wholly positive that the Government of India is looking to make a quantum leap in the economy and greatly values the role of the private sector, and indeed international investors, in achieving this growth. We will endeavour to support both our members and the Governments towards a favourable budget in the new year and indeed in the imminent FTA negotiations.”
The Budget, which will be announced in February 2022, is an opportunity for India to reignite the strong growth it has established in recent years as the economy gradually opens up from the pandemic. This submission comes at a positive time for India-UK relations, under the Enhanced Trade Partnership (ETP) and alongside ongoing preparations for upcoming Free Trade Agreement (FTA) negotiations. Both sides share a profound level of optimism towards deeper collaboration and cooperation across sectors, including those highlighted in this submission.
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