India Inc urges Budget sops to boost capex, wants focus on consumer demand

Bank lending for new projects fell to record low in FY21 as per RBI data

Indian companies are expecting generous tax incentives from the Union Budget that will help them invest more in building capacities in the coming years.

While the productivity-linked incentives (PLIs) are a good start to spur local manufacturing, the government should also take steps to boost consumer demand, which is not showing encouraging signs, say chief executive officers (CEOs) of India Inc.

Statistics released by the Reserve Bank of India (RBI) shows that Indian banks had sanctioned loans worth Rs 75,558 crore in 220 new projects — a record low — in the pandemic-hit financial year ending March 2021. This is not showing