Union Budget 2021: Industry demands export promotion measures, simplification of labour laws

New Delhi: Finance Minister Nirmala Sitharaman on Tuesday held discussions on regulatory environment impacting private investment and measures for promoting exports in a pre-budget consultation with stakeholder groups from industry, trade and services sectors. The representatives submitted suggestions concerning the reduction of the compliance burden and tax litigation, allowing self-certification in low-risk industry, decriminalisation of tax and company laws. Besides, they demanded reduction of cost of equity capital, simplification and rationalisation of duties and labour laws, adoption of international standards of alternative dispute resolution, export development funds for helping MSME exporters and ease of investment flow into the manufacturing sector. "The main areas of discussion during the aforesaid meeting included regulatory environment impacting private investment, measures for promotion of exports amidst rising protectionist tendencies, industrial production, logistics, media & entertainment services & IT & IT enabled services among others," an official statement said. Speaking to reporters after the meeting, CII President Vikram Kirloskar said: "They (ministers and government officials) have understood the situation, the headwinds in the economy and they have looked at all the possible suggestions whether it is to have fiscal easing which is what we have suggested, various ways to improve tax collection, improve demand". FICCI President Sandip Somany said the meeting delved into infrastructure bottlenecks in terms of the rules, regulations which can help free up business. Assocham Secretary General Deepak Sood said a common suggestion was how to increase the demand side of the economy and inject liquidity into the system. PHD Chamber of Commerce and Industry President D K Aggarwal said the chamber has sought the creation of a Rs 25,000 crore fund for stressed micro, small and medium enterprises sector which faces difficulty in availing funds from banks and NBFCs. FIEO President Ajay Sahai said the exporters' body has highlighted the liquidity concerns of exporters and sought rollout of e-wallet recommended by the GST Council to ease liquidity of exporters. The meeting was also attended by Minister of State for Finance and Corporate Affairs Anurag Thakur; Finance Secretary Rajeev Kumar; Economic Affairs Secretary Atanu Chakraborty; Revenue Secretary Ajay Bhushan Pandey; among others.Follow full coverage of Union Budget 2020-21 here