Finance Minister Nirmala Sitharaman on Thursday (December 26) held crucial pre-budget discussions with key industry representatives, emphasizing measures to increase trade exports and strengthen India’s global competitiveness. Discussions focused on the importance of supportive policies and targeted investments to capitalize on emerging opportunities, particularly in the American market.

Industry leaders have called for a more robust tax framework to support Global Capability Centers (GCCs). They recommended refining safe harbor rules and speeding up the implementation of advance pricing agreements. According to them, these measures are essential to promote international commercial operations.

Rajesh Nambiar, Chairman of NASSCOM, said: “We have focused on two main issues: better taxation for GCC countries through safe harbor rules and effective implementation of advance tax agreements. prices, which have been previously announced but require proper execution.

The US market has been touted as a key growth area amid potential tariff conflicts. Industry representatives have urged the government to allocate additional funds to market Indian products in the United States, projecting an untapped export potential of $25 billion over the next three years.

Ajay Sahai, CEO, Federation of Indian Export Organizations (FIEO), remarked, “Through strategic marketing support, India can significantly increase its export share to the United States. This requires government focus and funding.

Micro, small and medium enterprises (MSMEs) were prioritized during the discussions. Industry representatives proposed extending the interest equalization system for three years and increasing funding under the Market Access Initiative (MAI). These measures would help MSMEs expand their global footprint and participate in reverse buyer-seller meetings.

Pankaj Chadha, Chairman, EEPC India, highlighted, “Interest subsidies are crucial since 50% of exporters belong to the MSME sector. Additional AMI funding can enable exporters to connect with international buyers and conduct energy audits to improve efficiency.

Another key requirement was the creation of a global shipping company to reduce transportation costs and achieve substantial savings. Industry executives believe the move would significantly boost the competitiveness of Indian exports.

Allocating funds for energy audits has been recommended as a practical measure to improve operational efficiency, particularly for small businesses. Such measures would reduce costs and improve sustainability across all sectors.