Nirmala pushes for growth, slashes income tax
URBAN INFRASTRUCTURE FUND TO PAVE WAY FOR GLOBAL BUSINESS HUBS, LAB GROWN DIAMONDS TO GET INCENTIVES
There will be a lot of appreciation for the inclusive budget. This year’s budget is the voter’s budget. And NRIs don’t have a vote in their country.”
Ram Buxani | Chairman, Cosmos-ITL Group
The FM’s announcement to further upgrade the ‘DigiLocker’ platform will give a big boost to user documentation, support the onboarding efforts of NBFCs and fintechs.”
Adeeb Ahamed
| Managing Director of LuLu Financial Holdings and Vice-Chairman of FERG UAE
From a jewellery industry aspect, our key recommendation to reduce import duty for gold from 15% to cure illegal imports has not been addressed — and that’s quite disappointing.” Shamlal Ahamed | Director - International Operations at Malabar Gold & Diamonds
Const_ ruction of 50 new airports and development of waterroutes is sure to have major impact on the socio-economic fabric of India and will boost our position as a dream destination for global businesses.”
Yusuffali M.A. | Chairman of Lulu Group
India is raising its capital investments in the 2023-24 financial year to a substantial Rs10 trillion — that’s 3 times what was the level in 2019-20 — as the government goes in for a growth budget. The Rs10 trillion capital investment represents 3.3 per cent of GDP.
“In spite of the massive slowdown globally caused by Covid-19 and the war, the Indian economy is on the right track,” said Nirmala Sitharaman, the Finance Minister.
An ‘inclusive’ Budget
“I would term it as an ‘inclusive’ budget that has tried to take into consideration all segments of society and priority sectors,” said Yusuffali M.A., Chairman of Lulu Group. “For me, the key takeaways are the major initiatives announced in strengthening connectivity, food security and skill development sectors.
The Lulu founder, incidentally, is a promoter shareholder in Kochi’s Nedumbassery Airport and also the one in Kannur. “I am sure Budget 2023-24 will further strengthen IndoGulf business relationship and bring in more investments into the country to benefit our economic development and employment sector.”
The budget also outlines creating an ‘urban infrastructure fund’ of Rs100 billion a year as India aims to make it smoother for global businesses seeking to set up manufacturing/logistics hubs in the country. Post-pandemic, countries are competing to take in such possibilities as businesses realise that consolidating all of their overseas interests in single markets could create supply chain logjams.
Record capital investment outlays, incentives for manufacturing and infrastructure push are clear indications of how India is preparing itself as a global hub for services and manufacturing.”
G. P. Hinduja
| Co-Chairman, Hinduja Group
Personal income tax
In latest budget, India raises exemption for income tax rebate to Rs700,000 from Rs500,000.
India reduces maximum upper tax to 39 per cent from 42 per cent, which is ‘one of the highest in the world’.
There are major shifts in the income tax burden of individuals. Reduction of up to 25 per cent are being offered depending on the individual’s annual income. For instance, someone generating Rs1.5 million gets to pay 10 per cent of it, down 25 per cent from the previous regime.
No NRI mention
Leading lights in UAE’s Indian business circles also point to the fact that NRIs have not been given any mention in Budget 2023-24.
“In the last year of the current Lok Sabha, the Budget finds NRIs don’t mean anything to their motherland,” said Ram Buxani, Chairman of CosmosITL Group. “There is not even a hollow mention of NRIs in the text. The recent Pravasi Bharati award was given to just one person out of 4 million Indian expatriates living in the region.
The ‘Saptarishi’ way
While the FM Nirmala made a point of committing more into India’s villages/tribal zones, there are 7 overarching targets for growth and boost development: Inclusive development; Reaching the ‘last mile’; Infra investment; Unleashing potential; ‘Green’ growth;
Youth power; and Financial sector
Lab grown diamonds
India is also planning a quick move into the still emerging ‘lab grown diamond’ space, through special incentives. More jewellery retailers are using such diamonds as opposed to natural ones, and there is also a growing acceptance among consumers, especially among a younger buyer profile.
‘Polluting’ vehicles
The Budget is going for green with renewed push. Polluting vehicles are being given short shrift, with a new programme announced to turn older government-owned vehicles into scarp.
“Government will primarily focus boosting infrastructure with 50 new airports and a massive boost Rs2.4 trillion allocation for Railways,” said Neelesh Bhatnagar, the Dubai-based founder of NB Ventures.
Interest-free loans
Indian states will be offered interest-free loans, and these need to be used in tandem with their own capex schemes.
The Budget lays much emphasis on building the infrastructure of the country, with emphasis on last-mile connectivity,” said Anuj Puri, Chairman of Anarock, the real estate consultancy. “Improved urban infrastructure will provide further impetus to Tier 2 and 3 cities.
“The unwavering focus on infrastructure will indirectly drive real estate growth over the next one year. The tourism sector also has something to cheer for as the budget aims to boost domestic and international tourism.”
Duty cuts on TV, mobile parts
Domestic mobile phone production is getting more support, through reduction in custom duty. This has been one area where India has made headway of late, a fact emphasised by Apple widening its production of iPhones.
TV production too is getting the same treatment, as India spots an opportunity to deepen its manufacturing base across sectors and categories, especially in high-end gadgets.
“The economic growth indicated of 6.8 per cent is realistic — and it will still be higher that most countries,” said Tariq Chauhan, CEO of EFS Group.
We were hoping for concessions for NRIs residing abroad like reduction on TDS for those who have a source of income in India and are required to pay taxes in the country they reside in.”
Dr. Azad Moopen | Founder Chairman and Managing Director, Aster DM Healthcare
It is encouraging to see the Budget outlines measures focusing on sectors that will be the driving force of India’s economy and achieve the $5 trillion mark by 2025.”
Dr. Thumbay Moideen | Founder president, Thumbay Group
Startups have been encouraged to carry forward losses for 10 years with special focus on agritech startups. I don’t see any benefits for NRIs.”
Neelesh Bhatnagar | MD of NB Ventures