The Confederation of Indian Industry (CII) has asked the government not to increase excise and service tax in the budget amid signs of a sustained economic slowdown.
"There is a strong need for retaining the current rates of excise and service tax to spur investment," CII said in its
 
pre-Budget memorandum.
Led by an across-the-board slowdown, India's industrial output growth moderated to 1.8% in December from 5.9% in November.

Pulled down by slowing manufacturing output, which grew by a similar 1.8% in December, the latest index of industrial production (IIP) data released earlier this month showed a decline in capital goods outputit contracted by -16.5% in December.

The industry has rachetted up their demand for cheaper interest rates and friendlier fiscal policies to boost growth.

Finance Minister Pranab Mukherjee will present the Budget for 2012-13 fiscal on March 16.

"In the wake of deteriorating fiscal health of the government...announce initiatives that can accelerate the pace of private investments," it said.