Mixed response to Budget from Gulf NRI businessmen

Indian businessmen in the Gulf region welcomed the focus given to the agriculture sector in the Budget presented by Finance Minister Pranab Mukherjee today, but expressed disappointment as it offers no incentives for NRIs.

Xpertize United Managing Director Navin Kapoor and a board member of Indian Business and Professional Council (IBPC) said the Gulf businessmen in gold and silver trade will not welcome the hike in customs duty on gold and silver.

Terming the Budget as "lacklustrous", Indian Business and Professional Council (IBPC), which had organised a meeting to discuss the proposals, President and member of administrative board Paras Shahdapuri said, "There is nothing extremely exciting about the Budget."

"Agriculture sector has been given wide support which is good but infrastructure hasn’t been given enough attention even as fiscal deficit remains a matter of anxiety," he said.

Kapoor further said, "There was no mention of NRIs in the Budget and that is disappointing."

Shahdapuri also said the country’s exports, which have suffered in the wake of the financial crisis, should have been given more incentives.

The businessmen also expressed their disappointment over lack of focus on infrastructure. Infrastructure development would provide huge opportunities for Gulf companies engaged in the construction sector, Shahdapuri said.

India’s Consul-General to Dubai, Venu Rajamony, also lauded the Budget for its "inclusive nature" and an important step to bringing India back to a 9 per cent growth rate.  Arshad Khan, Director of Financial Technologies Group, said this Budget has displayed the focus of the government on social reforms which will bring long term benefits for the Indian economy.

"The Government has also started rationalization of taxes which will enhance tax compliance," he said.

"These policy outlines opens the door to heightened economic benefits for both India and its business relations with the UAE," he said.

Kamal Vachani, Director of Al Maya Group, said that a priority on infrastructure development and increased spending for farmers and the poor are welcome steps.

"Five per cent customs duty on set up boxes will boost the local electronic industry and cut in customs duty on LCD panels from 10 per cent to 5 per cent. This has been the demand of the industry and will benefit it in a big way," he said.

Vachani also hailed the removal of surcharge on personal income tax adding that it will get disposal income for the people. "Extension of Tax Holiday under 10A/10B till 2011 will benefit the Electronics and Software industry," said Vachani, who is also Regional Director of Electronics & Computer Software Export Promotion Council (ESC) to the Middle East.