Budget 2025: As India prepares for the Union Budget 2025-26, the Confederation of Indian Industry (CII) has proposed a robust 10-point agenda aimed at improving the ease of doing business (EoDB). These suggestions, presented ahead of Budget 2025, are designed to drive economic growth, reduce compliance burdens, and create a more transparent business environment.
Simplifying Regulatory Approvals
CII emphasised the need to simplify regulatory frameworks at all levels—central, state, and local. The organisation suggested that all regulatory approvals should be processed exclusively through the National Single Window System (NSWS) to ensure transparency and speed.
A dedicated central budget could incentivize states to adopt this system fully. Additionally, a statutory Act mandating time-bound delivery of services and grievance redressal from public authorities could significantly improve efficiency. Delays in approvals could automatically result in deemed consent, ensuring no hold-ups for businesses.
Enhancing Dispute Resolution Mechanisms
Efficient dispute resolution is essential for businesses. CII recommends increasing the capacity of courts and promoting Alternative Dispute Resolution (ADR) mechanisms to expedite case settlements. States with high case backlogs should establish more commercial courts and enhance the efficiency of existing ones.
Expanding the National Judicial Data Grid (NJDG) to include tribunal data could help manage and reduce the significant backlog of cases in the legal system.
Improving Land, Labour and Environmental Compliances
For Budget 2025 to truly drive business growth, easy access to land is crucial. CII proposes that states be incentivized to develop an Online Integrated Land Authority to manage land banks, digitize records, and resolve land disputes. Additionally, the India Industrial Land Bank (IILB) should evolve into a National Level Land Bank, supported by a dedicated budget allocation under Budget 2025.
Labour compliance remains another challenge for businesses. CII suggests that Budget 2025 focus on expanding the scope of the Shram Suvidha Portal to include all central and state labour laws. This will ease the burden on businesses, ensuring compliance is seamless and efficient.
Environmental compliance also requires a unified framework. CII recommends that Budget 2025 incorporate provisions to streamline environmental regulations by consolidating various acts under the Environmental Protection Act, thereby centralising pollution control measures for greater ease of doing business.
Trade and Tax Reforms
Trade facilitation is another crucial focus area. The Authorised Economic Operator (AEO) programme should be simplified and made more attractive for businesses, particularly MSMEs. Suggestions include extending the deferred duty payment period, streamlining renewal processes, and lowering entry thresholds for MSMEs.
To address the high pendency of tax disputes, the CII suggests improving the effectiveness of mechanisms like Advance Pricing Agreements (APA), Dispute Resolution Schemes (DRS), and Boards for Advance Rulings (BAR). These steps can reduce income tax litigation and unclog cases at the Commissioner of Income Tax (Appeals) level.
By implementing these measures, CII believes India can achieve a business-friendly environment, attract more investments, and strengthen its position in the global economy.