Indian business leaders and professionals in the UAE have welcomed the Indian Union Budget 2025, calling it a significant step towards economic growth and middle-class empowerment. However, concerns remain over stricter tax regulations for Non-Resident Indians (NRIs), which could lead to higher compliance burdens and potential double taxation.
Many industry leaders hailed the budget for its pro-business reforms, increased foreign direct investment (FDI) opportunities, and tax relief measures aimed at boosting domestic consumption.
Boost for the Middle Class and Key Sectors
Yusuff Ali M.A., chairman of Lulu Group, praised the budget’s focus on empowering the middle class and fostering a self-reliant economy. He highlighted the decision to expand FDI in the insurance sector as a move that would attract global investors.
Real estate leader PNC Menon, founder of Sobha Realty Group, described the budget as a catalyst for growth in the housing sector, particularly in rural areas. Similarly, G.P. Hinduja, chairman of the Hinduja Group, noted that the middle class received its first significant tax relief in a decade, which could revive demand and create employment opportunities.
The healthcare sector also received a major boost, with Dr. Azad Moopen, founder & chairman of Aster DM Healthcare, commending the government’s decision to add 75,000 new medical seats. Faizal Kottikollon, chairman of KED Holdings, welcomed the reduction in the prices of life-saving medicines and the establishment of cancer care centers in district hospitals.
Education and Infrastructure Investments
Education reform was another focal point, with Sunny Varkey, founder of GEMS Education Group, acknowledging initiatives that emphasize technology integration, skill development, and inclusivity.
Infrastructure spending also received positive feedback, with Rohan Khatau, director of CCI Projects, noting that public-private partnership (PPP) initiatives will facilitate urban development. However, he suggested that a more direct stimulus could have accelerated investment and demand.
Concerns Over NRI Tax Regulations
Despite the positive reception, several UAE-based Indian professionals expressed disappointment over the lack of incentives for NRIs.
K.V. Shamsudheen, founder director of Barjeel Geojit Financial Services, pointed out that while India received a record-breaking $129.1 billion in remittances in 2024, the budget failed to address the needs of NRIs. Meanwhile, Vikas Sutaria, founder of Irah Lifespace, criticized the absence of tax incentives for NRIs and high-net-worth individuals (HNIs) in the luxury housing segment.
Siddharth Balachandran, executive chairman & CEO of Buimerc Corporation, acknowledged the tax relief for the middle class as a positive step but warned that increased scrutiny on foreign income and residency status could complicate financial planning for NRIs.
Looking Ahead
The 2025 budget’s emphasis on fiscal stability, consumption growth, and FDI expansion has been met with cautious optimism. However, business leaders urge the Indian government to address NRI concerns, streamline taxation policies, and provide clearer guidelines to avoid double taxation risks.
As India continues its journey towards becoming a $5 trillion economy, experts believe that balancing domestic reforms with global investment incentives will be crucial in sustaining long-term economic growth.
