Indian Expats Welcome Reduced Custom Duty on Gold, NRIs Allowed to Carry More Gold Home
Dubai: The Non-Resident Indian (NRI) community in the UAE eagerly awaited the Indian Union Budget for 2024-2025. The Union Finance Minister, Nirmala Sitharaman, announced a reduction in basic customs duty on gold and silver from 10 percent to 6 percent, bringing significant relief to NRIs and Indian tourists in the UAE.
Sunil Sinha, Vice Chairman of the Indian Business & Professional Council, expressed his satisfaction with the new budget. He congratulated the Modi government, referring to it as a “balanced and growth-oriented Budget.” He highlighted the government’s commitment to maintaining fiscal discipline, noting the fiscal deficit target of 4.9 percent for the year. Sinha, an NRI from Dubai, emphasized the positive impact of reduced customs duties on gold, which will benefit many NRIs who frequently travel between Dubai and India.
Chandra Shekhar Bhatia, an NRI businessman from Dubai, shared his enthusiasm about the reduction in customs duty. He pointed out that Dubai is a major hub for gold, and the reduced duty means NRIs can now carry more gold to India without incurring hefty taxes. This change, he noted, would also encourage Indian tourists to buy more gold in Dubai.
Dr. Azad Moopen, Founder Chairman of Aster DM Healthcare, praised the budget for its focus on youth employment and upskilling. He highlighted that with a significant portion of the Indian population under the age of 35, the budget’s emphasis on job creation and skill development is crucial. Dr. Moopen also appreciated the 12.5% increase in the healthcare budget, bringing it to Rs. 89,287 crores. He noted the government’s initiatives to establish new medical colleges, promote cervical cancer vaccines, and enhance maternal and childcare schemes. The reduction in customs duties on medical equipment and exemption of certain cancer medicines from duty were also seen as positive steps for the healthcare sector.
Paras Shahdadpuri, Chairman, Nikai Group of Companies expressed positivness with this budget, “Prime Minister Modi’s 3.0 government has presented its first budget for 2024, outlining nine priorities and a long-term strategy to drive inclusive national growth. The budget’s focus on employment and skill development is commendable, with initiatives aimed at empowering youth through substantial financial investments. Special emphasis has been placed on the manufacturing sector, crucial for India to become a global economic power. Support for MSMEs through credit guarantee schemes and technology packages is expected to bolster the industrial backbone, fostering innovation and growth”.
Positive economic outlook, with a focus on job creation and boosting consumption, is expected to benefit key sectors such as consumer goods, real estate, and automobiles. The roadmap for sustainable and inclusive development, with priorities ranging from agriculture and employment to innovation and next-generation reforms, is promising. The advancement of digital public infrastructure further underscores India’s commitment to leveraging technology for progress.
The fiscal deficit is targeted at 4.9% of GDP, with an aim to reduce it to 4.5% by FY 2026. The budget also addresses coalition government dynamics by allocating significant funds to Andhra Pradesh and Bihar. Overall, the budget is poised to bring economic and financial stability, supporting annual economic growth at 7+% – Paras Shahdadpuri added.
Naveen Sharma, Chairman of the Taxation Society, described the budget as the best in the past decade. He emphasized the importance of job creation for economic growth and highlighted the doubling of the MUDRA scheme’s loan limit to 20 lakh. Sharma also addressed the controversial angel tax, stressing that taxing startups heavily is counterproductive and that the new budget offers a more balanced approach.
Rajesh Somani, Chairman, ICAI Dubai Chapter, expressed the hope with this budget, “Congratulations to Finance Minister Nirmala Sitharaman for presenting seven consecutive budgets under Prime Minister Modi’s leadership, especially in an election-bound era. The latest budget is highly programmatic and growth-oriented, focusing on employment generation, agriculture, infrastructure, and skill development. A notable highlight is the substantial allocation for research and development, crucial for positioning India as a leading global economy. Effective use of these funds will enhance technological advancements and drive faster growth. Overall, this budget stands out as a growth-oriented, merit-based plan for the country’s development.”
Jai Prakash Agarwal, Vice Chairman, ICAI Dubai Chapter, commented on new tax regime and gift city, “New Tax Regime Slabs by doing away with varied deductions, undertaking comprehensive review of Income Tax Act, Standardisation of Capital Gain Tax, Streamlining TDS rates, Unifying tax regime for charitable trusts – all these are indications that Indian Income Tax Act is slowly and steadily moving towards simplicity. No this is not coming out from this budget of 2024, rather this is a process which began 3 years back with introduction of New Tax Regime and now this is evident from Budget 2024 that simplicity in tax is inching and progressing with each budget being presented before the house and the country. This will boost ease of business and introduction of Variable Capital Companies in this budget and existing Ahmedabad Gift City model will attract foreign capital and investment”.
Sahitya K Chaturvedi, an Indian expat and chartered accountant, provided a different perspective on the budget. He appreciated its balanced approach to both micro and macroeconomic factors, though he noted the lack of relief on remittance taxes for NRIs. Chaturvedi pointed out that the UAE is a significant contributor to remittances to India and a major trade partner. He called for more clarity on the tariffs and export reliefs under the Comprehensive Economic Partnership Agreement (CEPA).
Sanjeev Dutta, CEO of the UAE India Business Council, praised the budget for setting a dynamic course for collaboration between the UAE and India. He welcomed the establishment of E-Commerce Export Hubs to help MSMEs and traditional artisans access international markets. Dutta also noted the positive impact of the customs duty review and GST simplification, particularly the reduced duty on gold, silver, and platinum. These changes, he said, would benefit UAE and Gulf-based gold and jewelry traders and strengthen economic ties between the two nations.
Kamal Vachani, Group Director & Partner of Al Maya Group and Regional Director of the Electronics and Computer Software Export Promotion Council (ESC), also welcomed the budget. He praised the government’s commitment to higher education through increased loan support, which he said would cultivate a skilled workforce essential for the electronics sector. Vachani highlighted the impressive growth of the electronics manufacturing industry, which reached a $115 billion market size in FY24. He also welcomed the reduction in GST on consumer durables, which he believes will create a level playing field for domestic manufacturers and boost consumer spending. Additionally, Vachani noted that the reduction in corporate tax would attract foreign direct investment (FDI) and generate employment opportunities, further boosting the economy.
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The Union Budget 2024-25 has been well-received by the NRI community in the UAE, with many seeing it as a positive step towards economic growth, increased trade, and enhanced bilateral relations between India and the UAE.
