Expat businessmen in UAE view India Budget 2026 with guarded optimism

Dubai: Indian expatriate business leaders based in the UAE broadly welcomed India’s Union Budget 2026, describing it as stable, continuity-driven, and strategically aligned with long-term growth.

Their reactions underline support for NRI-focused reforms, infrastructure-led expansion, manufacturing incentives, and technology investments, while also pointing to missed opportunities in sectors such as affordable housing, tourism scale-up, and financial services depth.

Across sectors ranging from retail and finance to healthcare, electronics, real estate, and FMCG, the common thread was confidence in India’s medium-term trajectory, coupled with expectations of sharper execution and more targeted interventions.

Confidence in growth

For Yusuffali M.A., Chairman of LuLu Group, the Budget signals continuity with a long-term vision and a clearer role for overseas Indians.

“The third budget presented by the finance minister focuses on tax simplification, economic growth, and long-term investment-driven development, with an emphasis on youth empowerment, NRI supports and fiscal stability,” he said. “It reflects confidence in India’s growth in the coming years making it one of the largest economies of the world.”

He highlighted the intent to draw global Indians deeper into India’s capital markets. “Government’s push to expand NRI participation is both timely and strategic,” Yusuffali said, pointing to proposals “to ease rules under the Portfolio Investment Scheme and raises overall foreign holding limits, enabling more global Indians to invest directly in India’s growth story.”

Technology and manufacturing also featured prominently in his assessment. He noted that the Budget “strategically invests in India’s future-ready workforce by focusing on high-growth sectors such as Artificial Intelligence,” calling it a signal of “long term commitment to technology driven inclusion.”

From an infrastructure and real assets perspective, Yusuffali pointed to measures such as “dedicated REITs to accelerate the monetisation and recycling of CPSE real estate assets,” and the proposed “Infrastructure Risk Guarantee Fund to provide partial credit guarantees and improve lender confidence.” He added that the focus on “Tier-2 and Tier-3 growth corridors and better urban connectivity” is likely to support residential and logistics demand over time.

NRI compliance relief

Several UAE-based professionals said the Budget stops short of major tax restructuring for overseas Indians, but meaningfully improves transaction ease.

Jai Prakash Agarwal, Chairman of the ICAI Dubai Chapter, said there were “no major tax overhauls for NRI but glimpses of ease of doing business seen in this budget.” He pointed to specific measures including “investment limits doubled to 10% in listed firms,” “TCS reduced to 2% on foreign remittance for education and overseas spends,” and the move where “TAN requirements scrapped for TDS on property sales by resident buyers.”

“These are the indications that ‘ease of doing business’ is the focus and voices of NRIs are being heard,” Agarwal said, adding that these are “welcome steps and will help in boosting NRI investments in India.”

Process reforms

Adeeb Ahamed, Managing Director of LuLu Financial Holdings, described Budget 2026 as one that “reflects a clear preference for stability and continuity, particularly in the face of persistent global volatility.”

From a financial services and NRI compliance standpoint, he pointed to specific procedural improvements. Among these was “the rationalisation of foreign portfolio participation by individuals resident outside India,” including the increase in “the individual investment limit for Persons Resident Outside India (PROIs)… from 5% to 10%,” and the aggregate cap raised to 24%.

He also highlighted transaction-level simplification for property sellers. “The proposal to allow TDS on the sale of immovable property by non-residents to be deposited using the resident buyer’s PAN-based challan, instead of requiring a separate TAN, further simplifies compliance and reduces transaction friction for NRI property sellers,” Ahamed said.

Another liquidity-related relief he flagged was the reduction of “TCS on overseas tour packages and on remittances for education and medical purposes… from 5% to 2%.”

At the same time, he described the approach to growth sectors as cautious. “From the perspective of India’s financial services ecosystem, the Budget remains measured,” he said, noting that while reviews and committees were announced, “greater clarity on sequencing, scale and medium-term growth priorities would have strengthened the sector’s outlook.”

On tourism, Ahamed observed that it was “addressed largely through skill development and destination infrastructure,” suggesting that “a more integrated articulation of national tourism objectives, alongside stronger alignment with aviation, connectivity and visa facilitation, could have further enhanced the sector’s growth potential.”

Fiscal credibility

Market-focused voices in the UAE highlighted the Budget’s emphasis on fiscal discipline and debt management as a critical shift.

Vijay Valecha, Chief Investment Officer at Century Financial, said, “India’s 2026-27 Budget strikes a smart balance between careful spending and strong growth.” He pointed to the fiscal deficit being “set at 4.3% of GDP for 2026-27,” and noted that the focus has moved toward “bringing down total debt relative to the size of the economy—expected to fall to around 55.6% next year, with a target of roughly 50% by 2030.”

According to Valecha, this trajectory “will ease future interest costs, free up money for useful projects, and build greater confidence in India’s economy.”

He described capital expenditure as the defining feature of the Budget. “The biggest highlight is the continued big push on government project spending, raised to ₹12.2 lakh crore for 2026-27,” he said, adding that sustained investment in “roads, cities, clean energy, and factories will create jobs, spark wider economic activity, improve efficiency, and encourage private companies to invest more.”

Aliasgar Tambawala, Co-CIO at Klay Group, framed the Budget as “a meaningful shift in India’s fiscal framework from deficit targeting toward public debt anchoring.” He cited the Centre’s objective of reducing the debt-to-GDP ratio “to 50±1% by FY2030,” from “56.1% in FY26 and a projected 55.6% in FY27,” calling it a move that reinforces fiscal credibility.

Tambawala said the “FY27 fiscal deficit is budgeted at 4.3% of GDP,” supported by “steady nominal GDP growth and expenditure discipline.” He added that “nominal GDP growth is projected at 10%,” with growth expected to remain driven by domestic demand and investment.

On the revenue side, he noted that “revenue assumptions are conservative,” with tax growth budgeted below nominal GDP growth. On borrowing, he pointed out that “net central government borrowing for FY27 is set at INR 11.7 trillion,” broadly in line with expectations, while the Reserve Bank of India is expected to offer “calibrated support via liquidity management and selective OMOs.”

Healthcare, skills focus

Healthcare drew strong support, with leaders pointing to scale, access, and workforce development.

Dr. Azad Moopen, Founder and Chairman of Aster DM Healthcare, said the Budget lays out “a thoughtful and forward-looking blueprint for India’s healthcare ecosystem—one that seamlessly integrates innovation, access, capacity expansion and global competitiveness.”

He highlighted the Biopharma Shakti initiative, “with an outlay of ₹10,000 crore over five years,” and the exemption of basic customs duty on “17 critical cancer drugs,” calling it a “timely and patient-centric measure.” Moopen also welcomed “the proposed 50 percent capacity expansion of district hospitals,” along with the expansion of NIMHANS 2.0 and three new AIIMS facilities, and pointed to workforce measures including “1,00,000 Allied Health Professionals (AHPs)” and the training of “1.5 lakh caregivers.”

Dr. Thumbay Moideen, Founder President of Thumbay Group, viewed the Budget through a healthcare and education lens, describing it as a signal of intent.

“The Union Budget 2026 sends a clear signal that India is serious about building a healthier, more skilled, and globally competitive nation,” he said.

He welcomed the emphasis on “healthcare infrastructure, medical education, skill development, and digital enablement,” while stressing that outcomes will depend on delivery. “What matters now is execution at scale—translating policy intent into accessible care, affordable education, and globally aligned training,” Moideen said.

Manufacturing funding

Electronics, semiconductors, and MSMEs emerged as a strong positive theme for Kamal Vachani, Deputy CEO and Group Director at Al Maya Group and Regional Director at the Electronics and Computer Software Export Promotion Council.

“Semiconductors are critical for electronics, telecom, automotive tech, defence systems, and AI,” Vachani said, noting that “historically, India imported a large share of chips.”

He welcomed the direction of ISM 2.0, saying it “aims to boost domestic production and reduce reliance on foreign supply chains, lowering strategic risk and import costs.”

On MSMEs, he pointed to the “Rs 10,000 crore SME Growth Fund,” describing it as support that will provide “much-needed capital and growth support.” He also highlighted the expansion of the Electronics Component Manufacturing Scheme, saying the increased outlay “to ₹40,000 crore will boost Domestic Manufacturing of Electronic Components and Encourage more companies to set up production units for components like PCBs, camera modules, display parts, batteries, etc.”

From an FMCG standpoint, Vachani said the industry “welcomes Union Budget 2026 as a progressive and growth-oriented budget,” citing measures to boost consumption, logistics efficiency, and ease of doing business. He added that the emphasis on inclusive growth and income support is “expected to enhance consumer confidence and drive volume-led growth.”

Real estate support

Anuj Puri, Chairman of ANAROCK Group, described the Budget as “capex-driven, asset-centric, and structurally pro-investment,” but with limited immediate relief for housing.

“From a real estate perspective, it has delivered limited direct but various indirect benefits - acting more as a growth catalyst than an instant rescue cavalry,” Puri said.

He flagged the absence of affordable housing measures as a key concern. “One major disappointment for the real estate sector was that there were no major announcements for affordable housing, which has been in free fall since the pandemic,” he said, citing data showing that its sales share fell “from over 38% in 2019… to just around 18% in 2025.”

He argued that the segment “was in express need of direct intervention by way of interest stimulants for buyers and developers,” adding that it “needed high-impact measures.”

Still, Puri acknowledged that initiatives such as “REIT-led monetisation of CPSE commercial assets,” support for data centres, and “a clear push for Tier-2 and Tier-3 commercial growth” reinforce confidence in real assets, hospitality, and urban expansion.

Fiscal discipline

Navin Kapoor, Owner and Managing Director of Xpertize United, framed the Budget as cautious yet ambitious.

“The theme of the ninth consecutive budget… can be characterized as a step forward towards maintaining caution due to geopolitical tensions but being optimistic about making India the third largest economy of the world,” Kapoor said.

He highlighted “capital outlays in Rare earth mining, Semiconductors and Bio pharma,” saying these would “enable India to take lead in Ai and bio pharma products.” Kapoor also welcomed the “big push to tourism through establishment of 15 archeological sites,” and described the proposed fiscal deficit reduction “from 4.4% to 4.3% in 26-27” as commendable.

On overseas investors, he echoed other expat voices, noting that “NRIs can make direct investment in Indian stocks is commendable.”

Policy signalling

From an institutional and policy dialogue standpoint, Siddharth Balachandran, Chairman of IBPC Dubai, highlighted the global resonance of the Budget.

Speaking during the IBPC Dubai India Dialogue Series, he said, “In the words of the IMF, India sets the tone for the fiscal future of the world.” He described Budget 2026 as “reform-oriented,” adding that it “introduces bold and, in some cases, surprising changes to the tax regime.”

Balachandran noted that “the impact of these measures will be felt over the coming months as they begin to reshape investor sentiment, business confidence, and long-term economic growth.”

Expectations still high

Taken together, the reactions from UAE-based Indian business leaders portray Budget 2026 as one that reinforces macro stability, simplifies processes for NRIs, and channels capital toward infrastructure, manufacturing, technology, and skills.

At the same time, their comments suggest that expectations remain high for sharper sectoral focus, especially in affordable housing, tourism scale, and financial services depth, as India positions itself for its next phase of growth.