India budget reaction: NRIs welcome FDI move

Indian Prime Minister Narendra Modi's government on Thursday announced which was well received by the non-resident Indian business community in the UAE.

NRI businessmen in the UAE termed the budget business-friendly as it will generate employment and also boost a number of industries in the country.

MA Yousuf Ali, Managing Director of Lulu Group and Abu Dhabi Chamber Board Member

It was a realistic budget with long term view rather than relying on quick fix remedies or populist soaps, MA Yousuf Ali, Managing Director of Lulu Group and Abu Dhabi Chamber Board Member, said.

“From industry point of view I am pleased to note bold steps like FDI in insurance and defence sectors which is sure to boost many related industries also and generate much needed employment. As a person who has been very actively involved in India's first PPP initiative, the Kochi International Airport, I fully endorse the FM's thrust in this direction. India badly needs major boost in infrastructure development and PPP is the best way forward.”

He said Innovative steps like startup fund and skill India are right steps forward, as India is known for its human asset and youth will be better equipped to go up to the next level. Needless to say the high funds allocated for highways development, agriculture sector and education sector especially for the girls are need of the hour and will surely have major long term impact on the future.

The introduction of E-visa and along with creating of tourism circuits will give fillip to tourism sector which I think can be grown further in synch with current global trends. Obviously hiking of income tax limits and cheaper loans is sure to bring smiles on the faces of large segment of our population, so is the special emphasis given to empowerment and security of women.

From the NRI point of view, hiking the duty free allowance to Rs45,000 will be welcomed by many, especially during the current holiday season.

Dr. BR Shetty, Founder and CEO, NMC Healthcare

“The Union Budget of 2014-15 is a forward-looking one, which affirms the vision of the government to bring about all-round development in the country, with emphasis on manufacturing, job creation, and skill development,” said Dr. BR Shetty, Founder and CEO, NMC Healthcare.

He said the emphasis given to FDI, banking sector development, healthcare, infrastructure, and rural development promises to take India much ahead as a nation. Manufacturing is a sector, which has a long way to go, and the emphasis given would help the industry to bring out quality products and take on a global marketplace with confidence. This, together with the support given to the tourism sector through better visa norms, would ensure stronger GDP growth, Shetty said.

New banking licenses being considered would help the government’s and RBI’s vision of bringing every household within reach of banking services, and to impart financial literacy to all. In simple ways, banking sector helps rural population bridge the good times and bad times through microfinance choices and saving opportunities, and as one of the banking license aspirants, we trust there is a whole lot that banks can contribute in this area.

“The initiative of the government to empower women, marginal farmers, and labourers through ‘Financial Inclusion Mission’ would be far-reaching. The establishment of AIIMS in each state, affirms the vision of the government to bring high quality and affordable healthcare to all.

“As an entrepreneur and businessman, I have always believed that India needs to consider providing a better environment for foreign investment to flow into the country, and I am hugely in favour of the government’s plan to relax FDI norms, and to foster an investor-friendly rational tax regime, which would increase investor confidence in the system. All in all, it appears to be a very ambitious budget, grounded on the realities that India faces today as a nation. I am sure it would help every Indian kindle renewed hopes in the greater potential of a country like India,” he added.

Kamal Vachani, Group Director of Al Maya Group

The proposed raising of Foreign Direct Investment (FDI) cap from 26 per cent to 49 per cent is a great step. This will increase foreign investment for the insurance sector and will help insurance firms to get much needed capital from overseas partners, said Kamal Vachani, Group Director of Al Maya Group; Regional Director of Electronics & Computer Software Export Promotion Council (ESC); and President – Dubai Chapter – Global Organization of People of Indian Origin.

“The e-Visa is a great move which will increase tourism. The duties on electronics manufacturing components have been reduced and this will encourage domestic manufacturing of electronic items in India. The proposal to set up four more AIIMS is an excellent move by the government as this will certainly provide the required medical assistance for the growing population.”

Dr. Azad Moopen, Chairman & Managing Director of Aster DM Healthcare

“I welcome the ‘Maiden Modi Budget’ presented today as it is very futuristic growth-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,” said Dr. Azad Moopen, Chairman & Managing Director of Aster DM Healthcare.

There is hardly anything to cheer about for the Non-Resident Indians (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 the Finance Minister, Moopen said.

From a healthcare point of view, the budget should have outlined a road map for comprehensive inclusive solutions. Rs5 billion 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, He said.

The budget disregarded demands on increasing GDP allocation on healthcare. India with a dismal 2 per cent GDP spend 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 to 8 per cent growth in three to four years can be achieved by cutting ‘Red Tape’ and rolling out ‘Red Carpet’,” he added.

Rizwan Sajan, Founder & Chairman, Danube Group

"I am pleased to see that after long time the Indian government has taken bold steps to bring in fiscal prudence. It is an endearing attempt as a whole to meet the expectations of the masses including much needed relief in Income tax and raising tax exemption on home loans,” said Rizwan Sajan, Founder & Chairman, Danube Group.

 The country had high hopes from Modi after giving them a huge mandate.

"As a result of the FDI proposed in different sectors like insurance and defense, it will give the economy a necessary boost, put it back on growth path to 7-8% from current sub-five level and create more jobs. I personally feel, with Finance Minister’s assurance on better infrastructure and job opportunities, it will help meet the aspirations of the poor and also insure their anti-poverty programs are well targeted," he added.

Rajan Mathrani, Managing Director, Elekta Gulf

Mathrani said he’s is happy with the new budget of Modi Government and the changes in the import duty on electronic items, especially LEDs.

"We have been waiting for the budget to see the changes in the customs duty on electronic gadgets. We are happy that the import tariff has come down and we hope it will come down further. Such changes are welcome and will encourage companies like Elekta to invest in India. The setting up of an NRI Fund for Cleaning up Ganges is a welcome step, but the Government should encourage NRIs to invest in education. If there is no education, people will keep dirtying the Ganges and other rivers again and the best policy is to educate them,” he added.

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