Budget falls short of NRIS’ expectations
Non-resident Indians in the UAE welcomed the Indian Budget 2023-24 as an inclusive and future-oriented blueprint to drive the $3.4 trillion economy to its medium-term goal of hitting $5 trillion by 2025-26.
However, most of them voiced their dismay over the budget that failed to address their longstanding demand for a reduction on TDS (tax deduction at source) across asset classes for those who have a source of income in India and are required to pay taxes in the country they reside in.
Finance Minister Nirmala Sitharaman has not even mentioned or acknowledged their contribution to the Indian success story in her budget speech. Indian Diaspora is the largest one in the world, and the remittance from them in 2022 was $100 billion. The UAE was the second largest remittance source market after the US.
Yusuffali MA, chairman of Lulu Group: I would term it as an “inclusive” budget that has tried to take into consideration all segments of society and different priority sectors. The construction of 50 new airports and the development of water routes are sure to have a major impact on the socio-economic fabric of India and will further boost our position as a dream destination for global businesses and investors. I am sure this budget will further strengthen the Indo-gulf business relationship and bring in more investments into the country to benefit our economic development and employment sector.
Dr. Azad Moopen, founder chairman & managing director, Aster DM Healthcare: The budget has excellent focus on skill development and addresses one of the core challenges that healthcare industry is facing today – shortage of nursing staff, through the announcement to start 157 nursing colleges alongside existing medical colleges. However, the overall impetus for the healthcare delivery sector is missing. We were hoping for an increase in budget allocation for the industry which is essential to fulfil the need gaps. The need to have more hospitals and healthcare facilities in rural and suburban areas to meet the rising demand remains untouched.
Joy Alukkas, chairman Joyalukka Group: The proposed capex of 3.3 per cent of GDP in the budget proposal will accelerate the country’s economic growth and job creation. Allocation of Rs 2.20 trillion by way of direct transfer to the farmers and sizable fund allotted to various agricultural/msme activities will be an impetus to agricultural/msme sectors. Budget has provided for a strong and macroeconomic environment.
Faizal Kottikollon, chairman, KEF Holdings: The budget is a blueprint for India’s expected leap to become a $5 trillion economy in a few years. Increased spending on infrastructure, railways, tourism, renewable energy, and energy transition will open many opportunities for global investors.
Dr. Ram Buxani, chairman of Cosmos-itl Group: India’s Finance Minister has in no unclear terms said that NRIS don’t mean anything to their motherland. There is not even hollow mention of NRIS in the budget text.
There will be a lot of appreciation for the inclusive budget otherwise. This year’s budget is the voter’s budget. And NRIS don’t have a vote in their country. Identifying 50 destinations within the country to promote tourism is a great decision. Scrapping old vehicles including ambulances will create a better environment. Shamlal Ahamed, managing director, International Operations of Malabar Gold & Diamonds: The budget has made efforts to drive further growth in the economy while addressing global slowdown and inflationrelated concerns. From a jewellery industry aspect, our key recommendation to reduce import duty for gold to cure illegal import has not been addressed and is quite disappointing. We hope that this request will be taken into consideration and addressed in the best possible manner.
Adeeb Ahamed, managing director of Lulu Financial Holdings: A balanced budget that takes into account the aspirations of India’s youth and MSMES. The budget underscores the fact that the way forward is to build a technology and knowledge-based economy. The proposal to adopt an integrated and innovative approach to developing destinations augurs well for the tourism sector. Kamal Vachani, group director & partner, Al Maya Group: The budget is peoplefriendly as tax exemption has been increased for the income up to 700,000 to benefit the middle-class. This will ensure higher spending by the households, leading to a boost in aggregate demand. Reduction of custom duty on parts of open cell (TV), mobile phones, camera lens, etc. would go long way in enhancing India’s export of the product. Thumbay Moideen, founder president, Thumbay Group: The overall outlook of the budget is positive and growthdriven, focusing on important sectors that will surely be the key driving force in the growth of India’s economy, and achieving the aim of the $5 trillion mark by 2025. The key highlights for us have been the importance given to green growth, youth empowerment, allocation to health research, and setting up of AI centers, thus making India a shining example of a global hub of excellence.
Dr. Dhananjay Datar, chairman Al Adil Group: There is a massive tax benefit for the middle class which means more disposable income. This will boost consumption and will revitalise the economy. The Agriculture Accelerator Fund will encourage start-ups in rural areas and is aimed at bringing innovative as well as affordable solutions to farmers, on the challenges they face.