Tax Simplification Likely to Be India’s Top Priority for Economic Growth, Say CEOs

Simplifying India’s tax regime is expected to be the central government’s primary focus to drive GDP growth, as indicated by the majority of CEOs surveyed by Moneycontrol and Deloitte.

An exclusive survey conducted by Moneycontrol and Deloitte between January 10 and 22, involving 45 CEOs from sectors such as financial services, consumer goods, technology, and energy, revealed that 86.7% of respondents considered tax simplification to be the government’s key priority for boosting economic growth.

Efforts to streamline the tax framework are already in progress, with the government working on replacing the Income Tax (I-T) Act of 1961 with a more modern and simplified structure. The proposed reforms aim to conduct a comprehensive review of the current Act, which consists of 23 chapters. A dedicated I-T review committee, made up of 23 sub-committees and working groups, is currently analyzing each chapter to identify potential areas for improvement.

Additionally, 55.6% of Indian CEOs foresee trade and investment reforms playing a crucial role in economic growth. They believe that trade reforms are likely to attract foreign investments and enhance the country’s export potential.

Meanwhile, 46.7% of respondents indicated that digitizing governance to improve efficiency, transparency, and inclusion would be the most effective strategy to stimulate growth.

A significant portion of the CEOs surveyed—42.2%—also suggested that upskilling and reskilling the workforce, particularly within the technology sector, could emerge as a priority in Finance Minister Nirmala Sitharaman’s budget for 2025-26.

Furthermore, addressing the fiscal deficit without compromising infrastructure spending is expected to be a key objective in the upcoming budget. The government aims to reduce the fiscal deficit to 4.5% by FY26, aligning with the fiscal consolidation roadmap introduced in 2021. As of November, India’s fiscal deficit represented 52.5% of the annual target, compared to 50.7% during the same period last year.

Have you read?
World’s Most Fashionable Countries.
World’s Best Countries For Business Expats.
Best Non-Native English Speaking Countries In The World.
Countries With The Largest Household Size.
World’s Best (And Worst) Countries For Older People To Live In.