Dubai: For an average Indian worker in the Gulf, a general election in India means little more than the cacophony on television channels. Whatever political party comes to power; his sustenance is a function of the economic conditions in the host country rather than the big promises in the election manifestos of political parties.

Everyone in the lower strata of the Indian diaspora knows that a few million economic migrants in the Gulf or elsewhere figure last in the order of priorities of national-level political parties. But clearly, for the expatriate professionals and business community, there are bigger stakes in an economically stronger India.

“The development agenda of the next government should have significant focus on investment policies, especially the foreign direct investment (FDI), including the non-resident Indian (NRI) investments. The overall infrastructure development of the country is extremely important,” said Dr Azad Moopen, chairman and managing director, Aster DM Healthcare.

“The new government should promote a business-friendly approach which can help in attracting FDI (foreign direct investment). There should be policies that will encourage NRIs to bring home their expertise and capital to take part in the development of the country,” added Ebrahim Haji, co-chairman, Malabar Gold & Diamonds.

Irrespective of the political party that comes to power, most NRIs want an investment-friendly government. “Foreign investors form a key component of our capital market. While FIIs bought $929 million (Dh3.41 billion) worth of shares in the first two months of 2014, they had bought equities worth $20 billion in 2013. Any new government policy should be aimed at attracting investments into the country,” said Sajith Kumar P K, CEO of IBMC Financial Professionals Group.

While investment-friendly policies top among the demands of NRI community, taxation on NRI investments in India is a big concern. “The new government should safeguard the interests of the working class. Taxation on return investments (capital gains) of the low-income earners should be nominal,” said Biju P. Koshy, managing director, Tharavad Group.

“In order to steer investments into India, there needs to be greater clarity on General Anti-Avoidance Rules and the new government should revise the Double Taxation Avoidance Agreement (DTAA) with Mauritius,” said Pradeep Unni, senior relationship manager, Richcomm Global Services.

Many expatriate business leaders in Dubai believe successive governments in India have used NRIs as a source of foreign exchange, but failed to utilise their financial and knowledge potential. “The new Government’s policies and approach should be pragmatic in terms of policy-making and NRI investments. NRIs are looking forward to a stable government with positive policies that encourage NRI investment into India,” said Kamal Vachani, regional director, Electronics and Computer Software Export Promotion Council and group director, Al Maya Group.

Foreign trade is a crucial area where India needs to focus in the coming years to keep its trade and current account deficits in check. Excessive jump in current account deficit last year saw the Indian rupee fall to a record low. With growing trade relations between the UAE and India, Indian businessmen based in the UAE feel India’s trade with the region and the rest of the world has significant potential if the government is willing to enact the right policies.

Bringing down taxes

“The new government should do all that is possible to smoothen the current export procedures. There should be less red tape, minimal bureaucratic procedures and hassle free export policy,” said Dhananjay Datar, managing director, Al Adil Trading Group.

Gold trade between the UAE and India has a significant role in the jewellery industry in India. Industry sources expect the new government to bring down taxes on gold imports into India. “As far as the gold industry is concerned, I expect the new government will do whatever possible to reduce the duty as well as the import restrictions. It would also help the NRIs if there is a change in the permissible limit of gold that they can take to India every time they travel,” said Joy Alukkas, chairman of Joyalukkas Group.

Infrastructure development is an area where India lags in investment with an estimated $1 trillion investment required in the segment between now and 2030. “NRI remittance is a huge resource that could be tapped to build infrastructure in India. Last year, India received more than $75 billion in remittances. Infrastructure bonds could be something that can work in favour of NRIs and government,” said K.V Shamsudheen, director, Barjeel Geojit Securities.

Many expatriate leaders felt they are neglected by successive governments in Delhi and this should change. “Non-resident Indians (NRIs) play a crucial role in terms of economic contributions. In spite of being regular and steady in its contribution for years, this segment still gets neglected,” said Y. Sudhir Kumar Shetty, COO, Global Operations, UAE Exchange.

“I believe the new government will strengthen the relationship with NRI businessmen who are expected to contribute to the enhancement of business relation between India and other countries,” said Roy C.J, chairman, Confident Group.