Budget evokes mixed response from NRI community

Inayat-ur-Rahman, Chief Business Reporter

The non-resident Indians shared their mixed reactions with Gulf Today on the Modi’s government Union Budget 2020-21 on Sunday. Adeeb Ahamed, MD, LuLu Financial Group: “It is encouraging to see the government opening up the education sector to FDIs. We are also positive about the move to increase overseas investment limit in the insurance sector, which will enable foreign players with competitive products and new technologies to enter the market.

We also welcome the Finance Minister’s proposal to increase the investment limit of Foreign Portfolio Investors in corporate bonds from 9% to 15%. This provides more room for foreign investors to penetrate the Indian market. More importantly, FPIs in infrastructure funds, can enjoy exemption in long term capital till 2024.

Promoth Manghat, Group Chief Executive Officer, Finablr: The 2020 budget demonstrates the resolve of the government to spur growth in the backdrop of the lowest rate of expansion in over a decade. The initiatives announced are clearly aimed at reviving consumption expenditure and investment growth while taking a pragmatic view of fiscal deficit targets. The continued rationalisation of personal income tax slabs, the sops announced for the rural and agriculture sectors and the aggressive push on infrastructure spending are steps in the right direction in line with the expansionary policy needed to stimulate growth.

Dr Azad Moopen, Founder Chairman & Managing Director, Aster DM Healthcare said:  The budget proposals by the Finance Minister have created huge anxiety and significant confusion among the NRI community.

While there are no benefits in the budget for the NRIs who send billions of dollars to their motherland to shore up its foreign currency reserves every year, it appears that the Central Government is trying to put them in difficulty through some of the budget proposals.

Bharat Bhatia, CEO, Conares: The Narendra Modi government’s second Union Budget presented by Finance Minister Nirmala Sitharaman is a balanced budget projecting a lot of opportunities for growth and investments that would prove to be beneficial to the economy at large. The budget promises development of 100 more airports across the nation by 2024 and is sufficient enough to create great impact on the economy.

Abdulla Nalapad, MD, Nalapad Investments, Dubai: Indian Finance Minister Nirmala Sitharaman’s second Union Budget shows the path India would take in the next five to ten years in line with boosting income of people and enhancing purchasing power. I think the government has set some realistic goals for most sectors of the economy and has laid down the framework to get there.

Rizwan Sajan, Founder and Chairman of Danube Group said: “Overall it is a balanced budget with more commitments towards Agriculture, Infrastructure, Transportation and Healthcare. The biggest takeaway appears to be for farmers when the administration expressed plans to double their income by 2022. Additionally, a big tax relief for lower and middle-income groups will be an incentive  for individuals to spend and thereby increasing consumption, which will be beneficial for brands like us.”

He further added:  “Make in India has been promoted by increasing the Import Duties on certain products like toys, furniture, footwear which will definitely boost the economy.

Jitendra Gianchandani, Chairman of Jitendra Consulting Group: The Union Budget is a holistic and integrated budget, focused on promoting the ‘ease of living’ for a common man and ‘ease of doing business’ for SMEs, MSME’s and corporate.

“We greatly welcome the government’s 16-point action plan to boost agriculture, towards the goal of doubling farmers’ income by 2022. Huge allocation for the agricultural sector will also greatly benefit the farmers and generate millions of new jobs in the rural sector, which will boost the agricultural economy in a big way.

James Mathew, CEO & Managing Partner, UHY James Chartered Accounts: In this  budget, the finance Minister has honestly tried to present a growth oriented budget. India is going through a very challenging time. Industries are operating at 70 pc capacity,  increasing the demand for the products and services is the only viable option available to boost the economy. The demand can come in only from more money in the hands of the consumers. There are so many ways the FM has tried to boost the disposable income- tax slab rate reduction, abolition of Dividend Distribution Tax, increased emphasis on Agricultural Income etc. are a few steps in the right direction.