Wednesday, 31 May 2023
Modern Exchange organises seminar on India Budget 2018, its impact on expat community

Modern Exchange organises seminar on India Budget 2018, its effect on expat neighborhood

The seminar was inaugurated by H E Indra Mani Pandey, Indian Ambassador to Oman, explaining the economic policies of the government of India and its far reaching effects.

“Government’s financial policies are consistent towards the development of our country. The economy is growing and international bodies have admired the demonetisation and GST (goods and service tax) implemented by the government. This is the best time for non-resident Indians to invest in the country,” H E Pandey stated.

“Indian expat community in Oman should collaborate with Omani business people to encourage them to invest in India.” HDFC Bank senior economist Tushar Arora delivered the initial keynote address.

“There are hopes and concerns in budget. Demonetisation and GST have adversely affected the country, but this phenomena is a short-term impact. There will be positive far-reaching effects for both these fiscal polices. Both these policy changes were the reasons behind economic growth fallen down from 7.5 per cent to 6.5 per cent, though 6.5 is not that negative indicator,” Araora stated.

“The Inflation rate target is 4 per cent with a possibility of plus or minus 2 per cent. And the expected inflation for FY19 is around 5 per cent, which comes under our prediction. High inflation rates could pose upside risks for interest rates and this could benefit some investors to ensure higher return on investment. The exchange rate will go down as the current account deficit worsens and the fair value deteriorates on account of rising inflation in the economy. This may result in increased NRI investments and transfers to India. The fiscal deficit remains a concern. Exports from is improving, but comparatively lesser than other emerging markets.”

Tax specialist, Kirit N Mehta gave the second keynote speech.

“There are 1.4mn registered organizations in India. But .6mn only pays tax frequently. Among Individuals, whilst 19mn salaried staff spend tax at R76,000 every, the 19mn businessmen spend R26,000 only. Also the Income by way of capital gains has been tax free of charge or taxed at nominal price major to low tax collections. This is a huge challenge India faces and the prime cause behind deficit budgets. The government wants to widen the tax base to raise sources for improvement. Actually, citizens who spend taxes are actively participating in the financial improvement of the nation.

“The US levies income and capital gains taxes at a much higher rate and further levies gift and inheritance tax as well. India is therefore one of the low tax nations. The efficient tax administration shall help reduce budget deficit.”

It is a truth that farmers do endure from not acquiring enough worth for their goods.

The government is concentrating on this and spending a lot more on rural development, specifically for creating infrastructure and making logistics to aid farmers acquire greater rates for agricultural goods. This shall aid minimize the wastage of farm goods and preserve its high quality.

Simultaneously, if the part of the middlemen is curtailed, the effective transfer from the
farmers to customers shall improve the revenue of farmers and bring about financial development, much less stress on Agri rates, inflation, spending budget deficit and interest prices.

Modern exchange basic manager, Philip Koshy welcomed the gathering and conveyed vote of thanks. Modern exchange has been catering to the funds transfer want of expats in Oman for several years.

Information Source: Muscat Daily

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