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Today we are bringing you a special report on the reactions to India’s Union Budget 2024-2025 from the United Arab Emirates. As India unveils its financial roadmap for the coming year, we’re seeing a flurry of responses from key business leaders and organizations in the UAE, highlighting the deep economic ties between these two nations.
Let’s start with Sanjeev Dutta, CEO of the UAE India Business Council-UAE Chapter. Dutta has hailed the budget as a significant milestone, praising its commitment to fostering an environment conducive to business growth and investment.
He particularly emphasized the budget’s focus on infrastructure development, digital transformation, and innovation initiatives, seeing these as substantial opportunities for both countries to leverage each other’s strengths.
Dutta highlighted several key points from the budget that could benefit UAE-India relations. The establishment of E-Commerce Export Hubs, he notes, will enable Indian MSMEs and artisans to sell their products in international markets – a move that could open new avenues for trade with the UAE.
He also welcomed the proposed review of the customs duty regime, anticipating potential easing of the duty structure and simplification of the GST system.
UAE-India relations
Of particular interest to UAE and Gulf-based traders is the reduction in customs duty on gold and silver imports. This move, Dutta suggests, could significantly benefit the jewelry trade between the two countries.
Shifting gears to the healthcare sector, we have insights from Dr. Azad Moopen, Founder Chairman of Aster DM Healthcare. Dr. Moopen expressed satisfaction with the 12.5% increase in budget allocation for healthcare, totaling Rs. 89,287 crores.
He lauded initiatives such as the establishment of new medical colleges, promotion of cervical cancer vaccines, and expanded maternal and childcare schemes.
Dr. Moopen also pointed out the relief provided to cancer patients through reduced customs duties on X-ray machine components and the exemption of three cancer medicines from customs duty.
He views these measures as steps towards fostering inclusive growth within the healthcare sector and bridging the rural-urban divide in access to essential services.
Economic Synergy
Now, let’s turn to the electronics and consumer goods sector. Kamal Vachani, Group Director & Partner at Al Maya Group, has welcomed the budget’s emphasis on bolstering domestic manufacturing.
Vachani sees the reduction in customs duties on mobile phones, chargers, and precious metals as a stimulus for consumer demand and a boost for domestic manufacturers.
Vachani also highlighted the government’s commitment to higher education through increased loan support, viewing this as a crucial step in cultivating a skilled workforce for the electronics sector.
He expressed confidence that these measures would propel India’s electronics manufacturing sector to new heights, creating a thriving ecosystem of innovation and economic prosperity. The electronics manufacturing industry is poised for accelerated growth, driven by the continued support of the ‘Make in India’ initiative.
The sector’s remarkable achievement of a $115 billion market size in FY24 underscores its potential. Further reductions in GST on consumer durables like air conditioners and televisions will create a level playing field for domestic manufacturers and drive consumer spending, commented Mr Vachani.
New Growth Opportunities
Lastly, we have comments from Yusuffali MA, Chairman of Lulu Group and Vice Chairman of the Abu Dhabi Chamber. Yusuffali described the budget as “futuristic and proactive,” with a strong emphasis on boosting entrepreneurship and inward investments.
He particularly praised the simplification of Foreign Direct Investment rules and the promotion of Indian rupee usage for overseas investments.Yusuffali sees the abolishment of the angel investment tax as a potential game-changer, predicting it will further boost India’s image as a global start-up hub.
He also commended initiatives aimed at youth empowerment, such as paid internships and skill development loans.
The reactions from UAE business leaders to India’s 2024 Budget are overwhelmingly positive. They see it as a forward-thinking financial plan that not only addresses India’s domestic needs but also strengthens its position as a global economic player.
The budget’s focus on sectors like manufacturing, healthcare, and education, coupled with measures to simplify trade and investment, is viewed as beneficial for both India and its international partners, particularly the UAE.
By – Vinod Kumar (Dubai)