Industry urges FM to spur jobs, consumption

Slash excise duties on fuel products and pare income tax rates to spur consumption, push employment creation and women’s participation in the work force, were some of the top ideas Indian industry presented at a consultation for the Union Budget of 2025-26 chaired by Finance Minister Nirmala Sitharaman on Monday.

The Federation of Indian Chambers of Commerce and Industry recommended that the Government consider a special tax exemption up to a defined limit for working women for expenses incurred on childcare for children up to the age of five years.

The Confederation of Indian Industry (CII) called for reducing the excise duty on fuel to reduce overall inflation and boost disposable incomes, along with a cut in marginal tax rates for personal income up to ₹20 lakh a year to trigger the virtuous cycle of consumption, which can boost growth and tax revenues. It also suggested rationalising the food subsidy bill by plugging leakages in the public distribution system.