Indian businessmen in the Gulf today largely welcomed the Budget, regarding it as good for the long-term growth of the country's economy saying the impetus given to rural, agricultural, infrastructural sector and reduction in personal income tax, will be a game-changer after demonetisation.
Welcoming the budget, Kamal Vachani, Regional Director, Electronics and Computer Software Export Promotion Council (ESC), Group Director, Al Maya Group and President, said the Finance Minister has presented a good budget for long term growth of the economy and the effect of demonetisation has shown its impact in reduction of the income tax rates.
"Income Tax rate cut to 5 per cent for individuals having income between Rs 2.5 lakh to 5 lakh is a welcome step which gives big relief to low-income people to spend more money of their hard earnings," he said, adding that tax for companies with turnover up to Rs 50 crores reduced to 25 per cent from 30 per cent is also a good step.
"No capital tax gain tax on property if sold after 2 years, which was 3 years earlier, is also a welcome step as this will boost the property market. More allocation for rural, agricultural and allied sectors will greatly benefit farmers and the weaker section, which also boost the agricultural economy in a big way. The overall budget is good for long term growth of the economy," Vachani said.
"In the current scenario with the cash crunch leading to demonetisation, there is no immediate relief for the common man," Sripriyaa Kumaria, Director General of Sharjah-based India Trade & Exhibition Centre (ITEC) said.
The impetus given to rural, agricultural, infrastructural sector with the allocation of record Rs 1,81,223 crore in 2017-18, which is 24 per cent higher than last year and reduction in personal income tax, will be a game-changer for the Indian economy, she added.
According to her, the reduction of tax by 5 per cent for small firms with turnover up to Rs 50 crore from 30 per cent to 25 per cent is a good move by the government.
"Over 96 per cent of the companies in MSME will benefit, although the revenue to the Government will reduce by Rs 7,200 crore, this move will positively impact the MSME sector which is the back bone of the Indian economy and one of the highest employers," she said.
Kumaria said the finance minister has granted infrastructure status to affordable housing, which has been a long-time demand from the real estate industry.
"The new measure will reduce costs for developers and attract investors especially NRI investors," she said.
Sudesh K Aggarwal, Chairman of Giant Group, said he sees
great emphasis on the growth of farming, agriculture and rural development sector, which will benefit very large section of the society.
"Doubling the farm income in 5 years is very ambitious and difficult to achieve when projected agricultural growth is only 4.1 per cent and 1 year has already passed since the announcement in the last budget," he said.
According to Aggarwal, two third of the GDP growth comes from consumption and at the moment consumption is down due to demonetisation.
"I am not so sure how this budget will stimulate consumption. The government seems to be aware of its responsibilities and efforts have been made in the Budget to put economy back on track after the recent demonetisation shocks," he said.
Sudhesh Giriyan, COO, Xpress Money, said the Union Budget's focus on education and skill development is a praiseworthy move since it will increase the employability of Indians within the country as well as overseas.
"In this context, setting up of the High Education Financing Agency and the allocation for multi-skill training institutes are two significant initiatives," he said.
According to Giriyan, the Budget mentions that in the next three years, one crore youth will be skilled - this could significantly increase the demand for potential Indian migrants.
"With the increasing requirement of skilled workforce in the GCC region specially to the UAE, this initiative of the Government of India could help the Indian migrant workforce with the right kind of job opportunities," he said.
