Reduce tax on fuel to slash petrol, diesel prices: CII

Industry body CII has suggested a reduction in fuel taxes, which constitutes a large share of the pump price of petrol and diesel. Its new president Sanjiv Bajaj says CII would encourage Centre and state governments to collaborate in reducing these duties.

"An immediate measure to moderate inflation could be to moderate taxes on fuel products, which constitute a large share of the retail pump prices of petrol and diesel. CII would encourage Centre and State governments to collaborate in reducing these duties,” the newly elected CII President Sanjiv Bajaj said.

He said the CII expected the GDP growth in a range of 7.4-8.2% in the financial year 2022-23, with the outlook critically hinging on the trajectory of global crude oil prices.

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Bajaj said this in his first address to the media after taking over as the CII chief.

He further added, “global headwinds and inflation will have to be countered with robust policy reforms, both domestic and external sector reforms, to unlock the growth potential of the economy. Tailwinds that are supportive of growth in the short-term include government CAPEX, private sector investment which is showing an uptick aided by strong demand in some sectors and the PLI push in the others, good agriculture season on the back of the expectations of a good monsoon and positive export momentum”.

Bajaj said that India has the potential to become a $40 trillion economy by the time it turns 100, in 2047, with milestones at $5 trillion by 2026-27 and $9 trillion by 2030-31.

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Manufacturing and services will be the twin engines of growth. The enabling policies of the government particularly the PLI scheme, are expected to push the manufacturing sector’s contribution in GVA to 27% by FY48. Similarly, Services, too, will witness its share rising from 53% to 55% in the terminal year. The contribution of exports to GDP must rise while the investment rate must be stepped up. Both government and industry must be equal partners in achieving this.