Dr B R Shetty, NRIs React to Union Budget 2018
“A strong and forward-looking budget from the Indian Finance Minister. With a major focus on the upliftment of agricultural sector, rural infrastructure, healthcare, and education, and incentives for traditional, micro and small-scale industries, the year ahead should see positive consumer sentiments helping sustain India’s growth story. Also commendable is the focus on technology, which points towards a reinforcement of the government’s digital vision.
While NRI welfare has not figured in the budget directly, increased focus on improving loan access, capital allocation and corporate tax reduction for traditional and micro industries could help NRIs look homeward for business investment because of a more conducive environment. Though we have another growth-oriented budget from a reforms-oriented government, it could have been better if the FM considered introducing participatory savings schemes, like a dedicated fund, for the low-wage workers (with menial jobs) working in the Middle East.”
UAE Exchange Group on the India Union Budget 2018
Promoth Manghat, CEO, UAE Exchange Group
“Truly a budget for a New India, the Union Budget 2018 promises an impetus for India’s future growth. Apart from the positive initiatives for agriculture, infrastructure and healthcare, the pragmatic focus on technology is a great sign for India’s digital transformation. The government’s decision to ramp up investments in research and skill development in robotics, AI, digital manufacturing and doubling the allocation for the Digital India programme, clearly signals a commitment towards creating a digitised economy.
Another significant observation from this year’s budget is the intent of the government to explore blockchain technology while hinting at discouraging non-regulated cryptocurrencies. Financial Inclusion has also been focused on with 60 crore bank accounts expected to be brought under the Pradhan Mantri Jan Dhan Yojana. With a positive budget outlook for the fiscal year 2018-19 in place, it will be interesting to see its rollout and reactions from the markets, global investors, NRIs and the people of India at large.”
Y Sudhir Kumar Shetty, President, UAE Exchange
“Overall the India Budget 2018 looks futuristic and strongly growth oriented. Indian economy is poised to grow @ 7.5%, which is expected to grow @ 8% going forward. This means the economy is well on course to emerge into the 5th largest economy. All sectors including agriculture, food processing, employment, education, health, infrastructure, textile, tourism housing etc., are addressed well. Modernisation of railways and security of passengers are in focus. Initiatives like the development of airports, tackling air pollution, free cooking gas and electricity to rural areas, Swachch Bharat Abhiyan etc., are also getting the right impetus.
On the corporate tax front, for companies with a turnover of up to INR 250 crore, the tax is reduced from 30% to 25%. For the individual tax, the salaried class benefits from standard deduction of 40000 INR. This means over 2.5 crore people from the salaried class stay advantageous. Senior citizens and pensioners are exempted from paying tax on income from interest up to INR 50,000. For health insurance and medical bills, they can claim up to INR 50,000 as tax deduction. Long-term capital gain is placed at 10% for over and above one lakh.
There has been no mention about NRIs in the budget. Probably government is prioritising on developments within India. The fiscal deficit is pegged at 3.5% which is a courageous move. Elections being around the corner doesn’t seem to impact the objectivity and focus of the budget. It can be called a bold budget.”
