FIEO urges Govt to address cost pressures, shipping gaps and R&D incentives in union Budget

Key Highlights

• Sectors such as textiles, electronics, chemicals, plastics, leather and footwear continue to face this challenge.
• Rationalising and reducing duties on key inputs would lower production costs, encourage domestic value addition and strengthen India’s export performance.
• Highlighting India’s dependence on foreign shipping lines, FIEO President also sought targeted policy and fiscal support for developing Indian global-scale shipping carriers.
• According to the exporters’ body, a strong domestic shipping ecosystem could reduce freight volatility, improve supply chain reliability and potentially save the country USD 40–50 billion annually in freight outflows.
• On the fiscal front, FIEO has recommended restoring the 200–250 per cent weighted tax deduction for in-house R&D expenditure under Section 35(2AB) of the Income Tax Act.