Neelkanth Mishra, Chief Economist at Axis Bank, Head of Global Research at Axis Capital emphasised that India needs to have a stable tax framework. “One of the biggest criticisms of India, compared to countries like Vietnam, is the volatility in tax rates. We streamlined capital gains taxes in July; why revise them again in February?” Mishra cautioned against frequent changes to tax structures, arguing that businesses need consistency to adapt and grow.
While he acknowledged that minor tweaks, such as widening tax slabs or adjusting thresholds, could release about ₹30,000 crores, Mishra pointed out that these adjustments would have limited macroeconomic impact.
Samiran Chakraborty, Chief Economist for India at Citi, encouraged stakeholders to focus on the broader economic policy framework rather than specific measures aimed at influencing market sentiment on Budget Day. “Look for the economic policy framework document with the most intent,” he advised.
Sajjid Chinoy, Head of Asia Economic Research at JPMorgan, echoed this sentiment, urging the government to prioritise long-term economic planning. “The government should plan the Budget by taking into account the economy over the next five years and not the stock market on Budget Day,” he stated.
(Edited by : Ajay Vaishnav)
