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NRIs See Budget as Election-oriented and Expansionary

While most respondents greeted the deficit budget as an expansion-oriented programme seeking to galvanise a slowing economy, others said it left much to be desired.

Following are reactions from a cross section of NRIs:

Dr BR Shetty, Mananging Director of NMC Group: It is encouraging to note that even during the financial crisis which has hit most emerging markets, India has registered 7.1 per cent GDP growth and is the second fastest growing economy. Even when Lok Sabha elections which are at our doorstep, brings down its scope, the interim budget gives one the feeling that we are aspiring to maintain the growth that we have achieved in the coming 
year as well.

Sunny Varkey, Founder & Chairman of GEMS Education: An expansionary deficit budget is the need of the hour when India is facing a slow down in growth. In my opinion, a deficit of up to six per cent of the GDP should not be a major concern at this critical time when what the nations needs is more fiscal stimulus to sustain economic growth.

Yusuffali MA, Managing Director - EMKE Group & Board Member - Abu Duabi Chamber of Commerce & Industry: As expected, the interim budget is without any major highlights to talk about as the government did not have much of a choice. Having said that, I must appreciate the greater emphasis laid on the agriculture, employment generation, rural development, urban infrastructure development and higher education as this is one area where India can do much strongly in the years to come.

Bharatbhai Shah, a prominent businessman and NRI: It is an exercise for ‘pocket money borrowing’ and in short, the government is in a denial mood. On the other hand, neither stock market nor the industry is in a mood to welcome this interim budget. There is nothing to tackle economic crisis, job losses and liquidity situation in the budget.

Rizwan Sajan, Chairman, Danube Building Materials: Great expectations-Great disappointment! There wasn’t much expected out of this budget so not largely surprised. With elections down the corner, there were no significant industry specific moves, although the government did in the past couple of months provide economic stimulus packages.

Raju Menon, Managing Director of Morrison Menon, Chartered Accountants: As expected, this interim budget was election-oriented.

The emphasis on the agricultural and educational sectors was good and indeed needed; however, since no other major sector was addressed in detail, we assume that this was probably done with an eye on the 
forthcoming elections.

Kamal Vachani, Director of Al Maya Group: Enough emphasis on agriculture sector in the interim budget 2009, announced by the Finance Minister of India, like increment in Agricultural Credit by three-fold up to Rs2,500 billion, the revival package worth Rs135 billion, fertiliser subsidy amounting to Rs448.63 billion, minimum support price for wheat amounting to Rs10.8 billion per quintal as well as farm debit waiver of Rs653 billion are the welcoming steps taken by the Minister.

Sudhir Kumar Shetty, COO, Global Operations, UAE Exchange: It is not encouraging budget as no major step was taken to boost growth. No talks about agriculture and support to trade in downturn scenario. The worrying factor is fiscal deficit, which is at 6 per cent of GDP and it is quite high.

· issacjohn@khaleejtimes.com