CII’s Demand Surge Recipe: Slash Fuel Excise, Unleash Consumption Vouchers

The Confederation of Indian Industry (CII) has proposed bold measures to the government, aimed at spurring economic growth and reviving consumer demand. Here's what the industry body recommends:

1. Excise Duty Cut on Fuel:

   • CII has urged a reduction in excise duty on petrol and diesel to tackle inflation and bring down transportation costs.
   • Lower fuel prices could ease household budgets and boost discretionary spending, creating ripple effects across sectors.

2. Consumption Vouchers:

   • The introduction of consumption vouchers has been suggested to directly incentivize spending.
   • These vouchers, targeted at low and middle-income groups, could be used for purchasing essential goods and services, thus stimulating demand in key sectors like retail, FMCG, and hospitality.

3. Economic Rationale:

   • Rising inflation and subdued consumer sentiment have hindered recovery in some segments.
   • These measures are seen as tools to inject liquidity and restore consumption-led growth.

CII believes these steps can revitalize the economy while aligning with broader fiscal goals. The ball is now in the government’s court to strike a balance between fiscal prudence and growth stimulus.