Budget 2025 must turbocharge manufacturing, GCCs with bold incentives: Deloitte’s Promod Batra

As India sets its sights on Viksit Bharat @ 2047, Promod Batra, Partner at Deloitte, says the country needs to focus on three key areas: promoting manufacturing, stabilising infrastructure, and developing a strong digital framework.

“Our share of manufacturing activity is just under 3%, compared to China’s 28.8%. So, the number of incentives we provide is crucial,” Batra tells Fortune India ahead of Budget 2025.

“Why should we hesitate to reinstate the corporate tax headline rate of 15% for the manufacturing sector? With a liberalised mindset, we should focus more on the activity itself rather than just the establishment of companies,” he says.

Batra adds that the Budget should provide an impetus to Global Capability Centres (GCCs), “one of the key sectors that has supported and contributed to both the surplus in services exports and the balance in merchandise exports.”

“If we want to continue supporting GCCs, especially as more of them consider India due to the availability of skilled manpower, we should introduce tax provisions that are more GCC-friendly,” Batra suggests.

He further emphasises that the Budget should prioritise greater investments in long-term infrastructure projects.