The Indian government unveiled a fire-fighting budget on Monday. Finance Minister Arun Jaitley’s third budget marked a strategic shift by addressing rural distress in a country of 1.3 billion, where two-fifths of families rely on farming and are reeling from two years of drought.
At the same time it hiked public investment in India’s woeful infrastructure by 22.5 percent, while taking further steps to revive corporate investment that Modi needs to create new jobs for India’s burgeoning workforce.
Indian businessmen in the Gulf welcomed the Budget. They believe that the thrust on rural and agriculture sectors will boost several industries. According to them, the Budget focused on the rural and agriculture sectors, but the allocation to social campaigns like Swachh Bharat Abhiyan, India’s biggest drive to improve sanitation and cleanliness, was unsatisfactory.
According to the Budget, NRIs without PAN not to be subjected to higher rate of TDS.  Jaitley said that Non-resident Indians (NRIs) without PAN will not be subjected to higher rate of TDS. “Non-residents without PAN are currently subjected to a higher rate of TDS. Budget 2016 proposes to amend section 206AA of the Income-tax Act so as to provide that TDS shall not be deducted at a higher rate in case of non-residents not having PAN, subject to prescribed condition.
Reacting on the Budget Praveer Chakravorty CEO of Bahwan Engineering Group said, “The Budget as expected was a balanced budget constrained by OROP, fiscal deficit and 7th pay commission. The Budget focused on balancing rural and urban growth. Big spends in infrastructure and agriculture, though target of doubling agriculture income in 5 years is nearly impossible looking at past and current performances. Manufacturing doesn’t get the required attention though we are talking about ‘Make in India’. Power sector doesn’t get a mention except increase in clean environment cess which will push the power prices. Big plus about the Budget is the resolve to maintain fiscal deficit at target levels. Benefits will come only if all the big allocations on infrastructure and agriculture are spent during target period by de-bottle necking the implementation part.”
Yusuffali MA, chairman of Middle East’s largest retail chain Lulu Group, called it a prudent budget. “The Budget has clearly highlighted the growth pillars of the Indian economy in agriculture, rural, social sector, skills, ease of doing business and tax and compliance reforms,” he said.
“In my point of view, the ‘three-year tax holiday’ for start-ups is one of the most exciting announcements of this budget. The next generation of skilled entrepreneurs are our future,” he said.
Kamal Vachani, regional director of Electronics and Computer Software Export Promotion Council, and group director of Al Maya Group, said it was a growth-oriented Budget. “Allocation of Rs 35,984 crore will give big boost for agriculture sector and focusing on the rural growth will push the business across various industries,” Vachani said.
NRI industrialist Lord Swraj Paul said that it had got its priorities right by focussing on the rural sector and those less well-off. “Only yesterday Prime Minister Narendra Modi had said that the budget was like an exam for him. I must say that he and his Finance Minister Arun Jaitley have passed the examination very well. I compliment both of them,” Paul, Chairman and Founder of Caparo Group, said.