Indian business community welcomes rural focus of Indian budget

Dubai: Indian business community in the UAE welcomed the rural focus of the Indian budget, while hailing it as pro-poor spending plan with due consideration for fiscal discipline, but many expressed their disappointment as the budget did not have anything specific for the non-resident Indian community

“Around 60 per cent of India’s population belong to the farming sector and doubling the income of farmers by 2020 is something to look forward to; it will change the face of the country.” said James Mathew, Secretary General of the Indian Business and Professional Council (IBPC) at a discussion on budget in Dubai.

Kulwant Singh, President of IBPC, said the focus on rural development and electrification plans for rural houses was a plan long overdue. “The farming and agricultural sectors were in need of this kind of support; the focus on the youth is another plus. I am also happy to hear about the foreign direct investment (FDI) in retail of domestic food products.”

Some of were candid about their disappointment. Lokesh Puthran, the treasurer for IBPC, agreed with several members, and said that NRIs were ignored in the budget.

“We were expecting much more from the Budget 2016. It is not very encouraging and there are no extra privileges for industries. The coal price increase will affect all industries, specifically the energy sector. The banking sector has been taken care of by the budget and there seems to be positive news for the infrastructure sector.” said Bharat Bhatia, CEO and Managing Partner, Conares.

Paras Shahdadpuri, IBPC Board Member, said this year, the government has focused on the lower end of the pyramid and laid emphasis on the rural and agricultural sector. “Steps such as LPG connections for women from BPL (below poverty line) households, special focus on education and encouragement to new entrepreneurs are some of the best features of this year’s budget,” he said.

“It is a farmer’s budget. And it is Indian budget in true sense. And rightly so. For long, rural population has kept on moving to urban areas because of uncomfortable rural situation,” said Ram Buxani, Chairman of ITL Group.

“I am happy that while the global economy is going through turmoil, International Monetary Fund (IMF) has named India a bright spot due to its strong financial grounding. India budget 2016 is well focused on rural development. The spotlight is also on infrastructure, agriculture and domestic development,” said Dr. B.R. Shetty, Chairman, UAE Exchange.

K. V. Shamsudheen, IBPC Board Member, said, “The government has largely neglected the agriculture and farming sectors for the last two years. However, this year they have given great importance to both sectors and this will certainly make a difference to the country’s economy.

Kiran Sangani, Managing Partner, Sangani and Company — Chartered Accountants said the budget this has tried to incorporate the various schemes related to Skilled India, Digital India, Start up India and Make in India. “The finance minister has given good chance to the people to declare undisclosed income through amnesty scheme. He has given relief to small tax payer.”

“The fact that foreign exchange reserves are high reflects the significant contribution of NRIs too. The focus on rural India in terms of development in employment, infrastructure, cleanliness etc, will enable a great leap for the country,” said Promoth Manghat, CEO, UAE Exchange.

Faizal E Kottikollon, Chairman of the UAE-based KEF Holdings said: “The budget for 2016-17 certainly looks at pressing challenges in India, especially in the area of rural development, which forms one of the nine reform pillars identified by the Finance Ministry.”

Welcoming the budget 2016, Kamal Vachani, Regional Director, Electronics and Computer Software Export Promotion Council (ESC) and Group Director, Al Maya Group said allowing 100 per cent foreign direct investment in food processing industry will attract more foreign investors.

“Everyone was looking forward to three major areas- Taxation, Ease of doing business and Markets. The proposal to simplify taxation structure coupled with ease of doing business along with long- term-gain plans for markets would go a long way in an investment surge. Revival of infrastructure projects, improved connectivity, implementation, corporate tax overhaul and FDI norms, all point in one direction to achieve Skill India, Make in India and gradually these reforms will lead towards Transform(ed) India,” said Rizwan Sajan, Founder & Chairman, Danube Group.

The budget this year has 3 big takeaways, said Bakul Gala, Director, BrandMark Group, Dubai. “First and foremost, it has an eye on supporting the common man and the small investor. Second take away is for SMEs and start-ups who will get tax holiday for three of five years of setting up the company and the third is bank recapitalisation and emphasis on infrastructure investments. Overall, the budget has focused on making India even more attractive for overseas investment. It has focused on rural, agriculture, health and education, which is good.”

Government’s focus on education and skill development is widely welcomed as it will increase the employability of Indians within the country as well as overseas. “The budget mentions that in the next three years, ten million youth will be skilled — this could significantly increase the demand for potential Indian migrants,” said Sudhesh Giriyan, chief operating office of Xpress Money.

“Finance Minister expressed happiness over strong foreign exchange reserves in India, which have a significant contribution from NRIs too. Also Prime Minister’s world tours have strengthened the trust of NRIs, who are positive about the future. Foreign Ministry is engaging with NRIs well and concerns are being addressed periodically. Now it is our turn to support the government in its endeavours towards complete development,” said Sudhir Kumar Shetty, President, UAE Exchange.

“Budget FY 16 17 focuses substantially on affordable housing which is in line with PM’s vision of housing for all. With the Indian government confident of meeting its fiscal deficit target, further rounds of interest rate cut is expected. This will boost the real estate sector by bringing much needed affordability into the market, said Shrikant Joshi, CEO and managing director, L&T Realty Ltd.