Yesterday, Indian businessmen and professionals in the UAE welcomed the 2022-23 budget presented by Indian Finance Minister Nirmala Sitharaman as a blueprint for the second populous nation’s next 25 years of digital- and innovation-driven growth journey to become the world’s third-largest economy.
Following are excerpts from a cross-section of Indian community members:
Yusuffali MA, chairman – Lulu Group: I would call it a very robust budget with a clear and strong emphasis on the key pillars of our nations — agriculture, rural development, and infrastructure development. The thrust on digital transformation such as digital rupee, blockchain technology, digital banking, digital university, and an e-passport will go a long way in fast-tracking India’s drive towards becoming a truly digital and transparent economy. It is a big relief to note that no new taxes have been introduced in this budget.
Dr. Azad Moopen, founder chairman and managing director, Aster DM Healthcare: Digital registries of health providers and health facilities, unique health identity, and universal access to health facilities are positive steps towards enabling access to healthcare for the wider population. Upgrading two lakh Anganwadis with better facilities will further enable the primary healthcare system. The allocation for healthcare is not to the level we anticipated. Coming out of the shadows of the pandemic, it is most important to allocate at least 3.0 percent of the Budget to healthcare.
Dr. Ram Buxani, Chairman, ITL-Cosmos group: The launch of the National Mental Health Programme is a timely move. Farmers are very well looked after in the budget. Hundred cargo terminals to be developed in three years, the launch of 400 Vande Bharat trains, chemical-free farming, promotion of startups for drone manufacturing, allocation of Rs600 billion for tap water, and formation of digital university all are going to make India on par with most advanced. Sovereign Green Bonds will attract handsome funds from NRIs. The introduction of digital currency is a pragmatic move.
Paras Shahdadpuri, Chairman, Nikai Group of Group: I am glad this year’s budget was uneventful and without major fireworks. The maximum emphasis was on digitization of various processes keeping in mind the future macroeconomics with a focus on microeconomics and inclusive growth. The budget is inclusive by ensuring that the lowest strata of the population get minimum necessities such as drinking water, electricity, and low-cost housing.
Mohan Valrani, chairman, Arcadia Education: An excellent budget. The budget focuses heavily on integrating technology across the sectors. The digital currency, e-passport, use of technology in agriculture and logistics, completion of 25,000 km of highway, roll out of 5G spectrum auction, making online education available to children, one-year tax relief to start-ups, and highest ever spending on infrastructure will help India to grow much faster.
Suresh Kumar, chairman, Indian Business and Professional Council: Tax stability, growth-oriented and strategic directions define the Indian budget. No tinkering on income and corporate taxes or excise duties. Emphases on rural, Agri and physical infra, digitization and green bonds for CAPEX, etc. augur well.
Kamal Vachani, group director & partner, Al Maya Group: The move to bring post offices under the core financial system will facilitate ease of banking by senior citizens and rural people by giving them access to accounts through net banking, ATMs, mobile banking. Reduction of corporate surcharge tax, filing of tax within two years of the relevant assessment year, the introduction of ePassports, an extension of the ECLGS scheme till March 2023, and the launch of digital currency are welcome steps.
Joy Alukkas, Chairman, Joyalukkas Group: The budget has provided an outline for the way forward. The proposal to reduce the customs duty on diamonds will give a big boost to the jewellery industry. The digital rupee initiative using blockchain technology will provide a big boost to the economy. Overall, we hope the proposed initiatives will fast-track growth and development.
Dr. Shamsheer Vayalil, chairman and managing director, VPS Healthcare: The budget envisions India’s overall growth with the government taking the lead by increasing capital spending. The budget proposes increased annual spending of Rs39.5 trillion. The capital infusion will ignite the growth engines and will give a booster dose to the economy. The introduction of central bank digital currency and the plan to roll out 5G services will bolster the digital economy and augment the opportunities in the sector. The PM Gati Sakthi Yojana will have a tremendous impact on private and NRI investment in India.
Adeeb Ahamed, MD, Lulu Financial Holding: The MSME sector, which forms the backbone of the country’s growth story, was given due focus, with the extension of the Emergency Credit Line Guarantee Scheme (ECLGS) scheme till March 2023, set to benefit the working capital requirements of small businesses and NBFCs. The thrust on process transparency, ease of doing business, and flexible access to capital will help build a more resilient MSME community, thereby encouraging competitiveness and innovation. The imminent launch of the Digital Rupee using blockchain technology is necessary for India to build a robust process around its vision of building a digital economy, and today’s announcement has set the tone for the country’s ambition.
Shamlal Ahamed, managing director, International Operations, Malabar Gold & Diamonds: A futuristic budget that aims to lay the foundation for India@100. The focus given on the betterment of digital infrastructure is quite commendable. Also, the budget has addressed various key areas that will enable accelerated and sustained growth, particularly the importance given to the ‘Make in India’ initiative will help resolve unemployment issues. As for the jewellery industry, the major lookout was for the reduction of import duty on gold that will help reduce illegal practices, which has not been addressed in this budget.
Dr. Dhananjay Datar, chairman, and MD, Al Adil Group: The launch of a digital rupee using blockchain technology will give a big boost to the economy. Personal taxation slabs have been left untouched. The budget has been presented with an eye on growth, development, and progress. Many measures reinforce the fact that there is no compromise on the way forward.
Raju Menon, chairman and managing partner, Kreston Menon: The 2022 Budget has its eye set firmly on the future and has prioritized capital outlay with a long-term goal. It is a fact that public spending has to take the lead for a speedy and sustainable revival of the economy. Governed by the principle of ‘Minimum Government – Maximum Governance’, the budget has laid down plans for improving the Ease of Doing Business in India which will be guided by the active participation of the states in digitalization of the processes and removal of overlapping compliances.
Naveen Sharma, convener, Accounting, Audit & Advisory Services Focus Group: A bold, prudent and futuristic budget. A 35 percent increase in infrastructure spending will help the economy to grow double-digit and that will make India the fastest growing economy in the world. Push for technology, the launch of digital currency, e-passport, ease of doing business 2.0 will make India a more attractive investment destination. Tax on cryptocurrency is welcome but 30 percent is too high. There is not much for NRIs.
Jitendra Gianchandani, chairman, Jitendra Group: Keeping in mind “Make in India and make India self-reliant, the finance minister has given the booster shot to the Indian economy. The budget estimates growth of 9.27 percent and focuses on four pillars of development, such as inclusive development, productivity enhancement, energy transition, and climate action.
Sajith Kumar PK, CEO & MD, IBMC Financial Professionals Group: Development plans with new governance and financial inclusion will make India’s growth double-digit in near future. New digitalization plans and green economy-focused developments will boost entrepreneurship and job opportunities for the youth. Support for world-class fintech initiatives, a blockchain technology-based digital rupee, control on virtual currencies and digital assets through the financial tax system, e-passport system, 5G implementation, digital banking units at 75 Districts, and 100 percent core banking to 150,000 post offices will empower people and the economy.
K V Shamsudheen, director, Barjeel Geojit Financial Services: A farsighted budget visualizing 100th years of independence. It includes proposals like fast infrastructure development, high-tech, and environment-friendly agriculture development, maximum utilization of solar energy, high-tech urban development, large-scale job creation, teaching to the students through 200 TV channels, modernization of the health care and education system.
Bharat Bhatia, Founder, and CEO of Conares: The budget promises marginal allocations for urban capacity building, modernization of building by-laws, town planning schemes, and transit-oriented development will be implemented. Announcements on setting up Centres of Excellence with an outlay of Rs250 crore for urban sector development, Rs480 billion for affordable housing, Rs195 billion towards solar equipment manufacturing will manifest the infrastructure development sector leaving a massive impact on the economy.
Abhishek Sharma, Co-founder & COO at Fashinza: Overall, the budget looks satisfactory with a core focus on infrastructure development. This will fuel growth sentiments in the country. The government has well recognized and addressed the financial problems being faced by the MSME sector and has given a great boon by extending ECLGS. Digital assets have also gained recognition.
Bal Krishen, Chairman and CEO, Century Financial: India has set a breakthrough by announcing its plans to launch a central bank digital currency, however implementing 30% taxes on income from any virtual digital assets could act as a potential headwind for investors to embrace this new asset class. Bonds in India were hammered after the government unveiled plans to sell a record amount of bonds in the next financial year to increase its borrowing needs. Estimates are that the government plans to sell about 15 trillion rupees ($200 billion) of bonds in the fiscal year starting in April.
CA Neeraj Ritolia, chairman, ICAI Abu Dhabi Chapter: It was the shortest budget by the finance minister but impactful. Budget with a long-term vision of high and sustainable growth; not at all an election budget. It is a balanced budget with a focus on digital and a future with enormous CAPEX. There could have been some tax breaks keeping in mind the pandemic hardship.
Anis Sajan, Vice-Chairman Danube Group: The Union Budget 2022 complements macro-economic level growth with a focus on microeconomic level all-inclusive welfare. It is highly inspiring that the Union Budget seeks to lay the foundation and give a blueprint of the economy over ‘Amrit Kal’ of next 25 years — from India at 75 to India at 100. With the introduction of e-passports and digital currency, India is making effective use of digital technology for ensuring a holistic and inclusive development process. The opportunities for growth and investments will certainly benefit the economy at large.
Dr. Thumbay Moideen, Founder President, Thumbay Group: It is welcoming to see the government’s unwavering commitment in boosting investments, creating jobs, and improving ease of doing business. For the healthcare sector, especially, it’s encouraging to see that healthcare sector spending is a priority.
Harikishan Rankawat, Secretary, The Institute of Chartered Accountants of India (Dubai) Chapter NPIO: Being a Crypto / NFT investor, I was focusing on announcements mainly related to Digital assets. Finance Minister Nirmala Sitharaman announced that any profit generated on the sale of digital assets will be taxed at 30 percent but the loss on sale of digital assets cannot be set off against Other Income. Though her announcement doesn’t make crypto legal, it does give official recognition to these digital assets. I feel that Crypto investors may look to migrate to low tax or no tax countries such as UAE. She also announced that the ‘Digital Rupee’ using blockchain technology will be issued by the Reserve Bank of India in the financial year 2022-23, which will be more efficient and cheaper to manage compared to traditional currency.
Dhaval Jasani, Founder & CEO, ZTI Global Consulting: A commendable job again by the Government of India in keeping a check on the fiscal deficit at 6.9 % for FY 2021-22 and 6.4 % for FY 2022-23 while continuing to pursue ambitious capital expenditure plans for the development of infrastructure across the length and breadth of India.
Deepak Bhatia, Director, Uncles Shop: The Indian Budget presented by the Hon’ble Finance Minister of India is a responsible, mature budget aimed to achieve the vision of India @ 100 and grow the Indian economy on a sustained basis. There is considerable emphasis and expenditure push on Capital Expenditure, Infrastructure, Digital economy, and exports. It is interesting to note in the Budget that the Special Economic Zones Act will be replaced with new legislation that will enable the states to become partners in ‘Development of Enterprise and Service Hubs’. This will cover all large existing and new industrial enclaves to optimally utilize the available infrastructure and enhance the competitiveness of exports. Apart from this, India will also develop 100 cargo terminals during the next three years under the PM Gati Shakti master plan. With this increased emphasis on export infrastructure and connectivity, one can look forward to a substantial increase in the volume of trade and investment between India and the UAE.
In total, the thrust on digital transformation such as digital rupee, blockchain technology, digital banking, digital university, and an e-passport will go a long way in fast-tracking India’s drive towards becoming a truly digital and transparent economy.
