Union Budget Boosts Job, Consumption: Gulf NRIs React

Dubai, Jul 23 (PTI) Provisions on employment and skilling, consumption boost, and support for rural and MSME sectors in the first budget of the Modi 3.0 government have enthused NRI businessmen in the Gulf region.

The budget, presented by Finance Minister Nirmala Sitharaman on Tuesday, has proposed Rs 2 lakh crore over five years for job and skill programs for 4.1 crore youth, including internships and incentives for first-time employees and women.

Dr Sunil Manjarekar, president of GMBF Global Dubai, said these measures aim to create jobs, boost consumption, support rural and MSME sectors, and maintain fiscal discipline while fostering digital and infrastructural development.

Set up over a decade ago, GMBF, or the Gulf Maharashtra Business Forum, aims to facilitate business, professional growth and trade development for individuals and businesses connected to the Middle East & Africa and Maharashtra state in India.

Highlighting the MSME and manufacturing support, which led to “enhanced credit guarantees, technology support, and increased Mudra loan limits from Rs 10 lakh to Rs 20 lakh for MSMEs,” Manjarekar also underlined the proposed budget allocation of Rs 2.66 lakh crore for rural development, including natural farming for 1 crore farmers over two years.

Shakir Kantawala, co-founder and managing partner of WingsWay Training Institute, said the government of India's consistent investments and focus on encouraging the education and skills development sector, with funds and financial support for loans is “much required for the huge workforce and young career seekers of the country.”

WingsWay Training Institute provides a wide range of skills under multiple training verticals.

“We welcome the new budget's focus on manufacturing capacity and the introduction of enabling policies and regulations for efficient and transparent rental housing markets,” said Gaurav Malhotra, MD, Hansgrohe India.

According to him, this approach aims to drive growth in housing and related industry segments, particularly in emerging cities.

“These budgetary measures provide a positive framework to companies like ours to thrive and contribute to a more sustainable future. On the flip side, an increase in taxes in capital markets is a bit disappointing,” Malhotra said.

Hansgrohe India, is a subsidiary of the German Hansgrohe Group, and has been present in the UAE capital Abu Dhabi since 2016.

Chandrashekhar Bhatia, Chairman of GBF Middle East, lauded financial support for loans up to ?10 lakh for higher education in domestic institutions.

He, however, said that one common income tax expectation from the budget 2024 is that the 30 per cent income tax rate may be introduced for income and salary levels above Rs 20 lakh, instead of the current Rs 15 lakh to put more cash in the hands of the middle class. “The gold duty reduction from 15 per cent to 6 per cent is great news for the NRI family,” Bhatia said.

Kamal Vachani, Group Director & Partner Al Maya Group and Regional Director, Electronics and Computer Software Export Promotion Council (ESC), said the budget's emphasis on bolstering domestic manufacturing, coupled with strategic tax incentives, creates a promising landscape for the industry's growth.

“The government's commitment to higher education through increased loan support is a visionary move that will cultivate a skilled workforce, essential for the electronics sector's innovation and competitiveness,” he said.

Vachani also welcomed the reduction in customs duties on mobile phones, chargers, gold, and silver, which, according to him, will stimulate consumer demand and provide a substantial boost to domestic manufacturers by lowering input costs.

“The reduction of import duty on gold will also help curtail smuggling,” he said, adding that the proposed simplification of duty structures for input parts and sub-assemblies, along with the elimination of nuisance tariffs, will streamline operations and foster a more competitive environment for electronics manufacturers.