Dubai's Indian chartered accountants hail new budget, say it is time to invest in markets

The Dubai chapter of Institute of Chartered Accountants of India (ICAI) has hailed India’s budget for supporting growth and being future-oriented. In its opening remarks, the institute’s representatives praised the budget for easing taxes on the middle class and taking steps to reduce unemployment, poverty and income disparity while keeping prices in check.

“India is on the total path of growth,” said Dinesh Kothari, Vice Chairman and Managing Director of Delhi Private Schools group. “If you have not invested in Indian markets, now is the time to do so because the dream run is about to start.”

It was on Wednesday that India’s Finance Minister Nirmala Sitharaman presented the union budget - the last full-fledged Budget before the general elections next year. With major changes in tax slabs and tax regimes, it is expected to be a budget that will positively impact the middle- and lower-income segments.

At an event held to discuss the budget, members of the ICAI went over the finer details of it and broke it down to explain how the changes would impact the various groups of Indians. “It was a budget that focused on 3 Cs- Capex, consumption and capital,” Anurag Chaturvedi, Chairman of ICAI Dubai. Capex, an acronym of capital expenditure, is the money spent to buy, maintain, or improve fixed assets.

Key takeaways

“This budget has been wonderful,” said Paras Shahdadpuri, Chairman of Nikai group. “It is a bottom-up approach, which means they have taken care of the weaker section of our country. They have also taken care of the schedule cast, schedule tribes and tribal areas of North and Northeast India. I would say it has been a very encouraging budget especially considering how much they have spent on Capex, which is going to generate a lot of employment, manufacturing activities, roads and ports.”

The 2023-24 budget is expected to drive the $3.4 trillion economy to its medium-term goal of hitting $5 trillion by 2025-26. For Chaturvedi, the key takeaway has been the focus on senior citizens. “The kind of incentives that senior citizens are getting is extremely critical,” he said. “They will be getting their leave encashment which is a big relief after the COVID pandemic. People have been working from home and not taking their days off. When this is converted into leave encashment and added to their retirement fund, it is a huge saving for them.”

According to Chaturvedi, the reduction of tax slabs for an individual income of up to 7 lakhs will give people surplus money to invest. “This will further prop the Indian economy,” he said. “The government is investing towards a growing India and these investments and capital market will help the country prosper.”

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