The focus on 'Make in India' in the Indian budget unveiled yesterday (Feb 28) will open up more avenues for non-resident Indians (NRIs) to contribute to the nation's development, said Dr B R Shetty, managing director and CEO of UAE Exchange.

He said the budget  sets India off on a faster trajectory of growth.

Reduction in corporate tax from 30 to 25 per cent over a four-year period, allowing foreign investments in alternative investment funds, as well as replacing foreign direct investment (FDI) and foreign portfolio investor (FPI) with composite caps, will be welcomed by NRIs looking to invest in India, said Dr Shetty, who is a leading Indian entrepreneur based in the UAE.

"The budget saw a strategic focus on financial inclusion. After the Prime Minister’s Jan Dhan Yojana, the government’s initiative to launch a National Skills Mission is a commendable step towards development through this route. Given that Indians are much sought-after worldwide for their integrity and commitment, strong skills will add to this and make India a treasure trove of multi-skilled youth. This will increase the earning capacity of the expatriate workforce, thereby enabling them to directly remit more money home, contributing to economic boost," said Dr Shetty.

Additionally, the new law on black money is a positive step towards tackling the menace of "hawala" system. If stringent regulations are followed in this front, legal remittances would increase India's foreign assets and broad money, signaling economic growth,  he said.

Y Sudhir Kumar Shetty, president, UAE Exchange, said: "The government's first full year budget for the fiscal 2015-16 reflects the India roadmap Prime Minister Narendra Modi has been evoking ever since he came to power. In that context, it is an endeavour in amalgamating aspects of social agenda with economic growth priorities.

"Laudable initiatives of the budget include facilitating funding to small entrepreneurs with Mudra Bank refinancing microfinance institutions that will strengthen the "Make In India" prospects," he said.

However the budget seems to have missed out on Modi government's posture of integrating overseas Indians into the country's growth story as there is no specific scheme that could benefit NRIs who remit billions to India, or any policy indication that will encourage NRIs to invest in India projects, said Shetty. - TradeArabia News Service