Expectations have been high from the budget after Narendra Modi came into power with a landslide victory in the general elections, mainly on the promise of ushering in happy days for India’s 1.2 billion people by creating more jobs, providing relief from price rise and reviving growth.
It’s a forward-looking budget for India. This was the general opinion of non-resident Indians (NRIs) in the UAE.
They were speaking to KhaleejTimes.com on the first union budget of the new government, presented by Indian finance minister Arun Jaitley on Thursday, July 10.
According to reports, the budget for the current fiscal comes against the backdrop of the Economic Survey 2013-14, the annual report card on the state of the nation, which has termed inflation-control, job creation and pushing growth as the three main challenges, while calling for a fresh dose of reforms.
Expectations have been high from the budget after Narendra Modi came into power with a landslide victory in the general elections, mainly on the promise of ushering in happy days for India’s 1.2 billion people by creating more jobs, providing relief from price rise and reviving growth.
“I don’t see this budget as a one-year budget. It provides a long-term focus. Look at the various schemes that are going to be launched,” said Sudhir Shetty, COO, Global Operations, UAE Exchange. According to him, there is lot of impetus given to manufacturing sector.
“What people were expecting, Jaitley delivered. In addition to that by 2019 they wanted to see power available in every household. It is a forward-looking budget and I am very happy with it,” added Shetty.
Highlighting similar sentiments, Ram Buxani, ITL-Cosmos Group Chairman, called the budget as one of the most refreshing in a decade.
He said: “One of the most interesting aspects in the budget was the modernization of the madarsas. This has never happened before. This shows that the Modi government is keen to take care of the minorities. Another important point in the budget was to raise the number of seats in the All India Institute of Medical Sciences (AIIMS) and the Indian Institutes of Technology (IIT). The most striking feature in the budget was developing hundred smart cities. This means that entire India is going to be urbanized.”
Buxani, however, expressed his disappointment on the neglect of NRIs in the budget. He said: “The NRIs are unrepresented constituency in the Indian law making machinery.”
Sounding optimistic of the budget and its features, Paras Shahdadpuri, President of the Indian Business and Professional Council, Dubai and chairman of Nikai Group of Companies, said that it conveys an urgency to get things done. He said: “They have taken interest in investing in food grain storage. This is quite welcome as 30 per cent of India’s fresh produce goes wasted due to rains and storage space. Investment is also done in manufacturing sector. India cannot dream of becoming a super power without having a sound manufacturing base.”
Talking about the incentives and freebies given to home and construction sector, Shahdadpuri said: “It is important for the overall growth of the national economy as this industrial sector supports 200 other ancillary industries which help the entire economic cycle. They have also encouraged spending by the small tax payer by raising the minimum tax level by Rs 50,000 (Dh 3062) and not increasing the overall tax rate.”
Dr. Azad Moopen, Director, NORKA Roots and Chairman & Managing Director, Aster DM Healthcare said: “I welcome the maiden Modi budget presented today as it is very growth and futuristic oriented. Budgets can’t be a ‘One Stop, One Time Solution’ but has to be seen on longer perspectives for traction and vision. By opening up investment barriers and allowing FDIs in many areas, the finance minister has given a clear indication that he is doing the balancing act of growth without inflation.”
Talking about NRIs being sidelined, he said: “There is hardly anything to cheer about for the NRIs in the budget. It seems the new government sidelined the NRI community and didn’t give importance to this very potential group. The unleashing of NRI fiscal power would have added strength to the hands of finance minister.’
“From a healthcare point of view, the budget should have outlined a road map for comprehensive inclusive solutions. Rs 500 crore (Dh 31.2 million) for new AIIMS in four states is a good sign. Some of the key components of the budget, such as providing special treatment packages for senior citizens, incentives for visually challenged people and other welfare initiatives; will help boost the social development.”
According to him the budget disregarded demands on increasing GDP allocation on healthcare. India with a dismal 2 per cent GDP spent is one among the lowest among emerging in healthcare expenses. It is important that this is increased to at least 4 per cent. Opening up of insurance sector to FDIs may help to increase the insurance penetration in this area.
‘I hope that 7-8% growth in 3-4 years can be achieved by cutting ‘red tape’ and rolling out ‘red carpet’, said Moopen.
