Budget 2025: Impact on NRIs in the Gulf and Key Business Takeaways

Budget 2025 answers expectations, raises questions for Gulf NRI businesses

The Union Budget 2025, presented on Saturday, has been met with a blend of optimism and lingering concerns among non-resident Indians (NRIs) in the Gulf region. With India‘s deep economic and trade ties with the GCC (Gulf Cooperation Council) nations, several provisions in the budget have direct implications for Indian businesses and entrepreneurs operating abroad.

Marketing and Advertising: A Mixed Outlook

Bhavesh Talreja, Founder and CEO of Globale Media, highlighted that the Union Budget 2025 brings both opportunities and challenges for the marketing and advertising industry.

“The government’s focus on increasing disposable income through revised tax structures is expected to boost consumer spending. This could lead to higher marketing and advertising investments by Indian brands, many of which have a significant presence in the Gulf,” Talreja said.

However, he pointed out a critical oversight: the failure to reduce the 18% GST on advertising services.

“This remains a missed opportunity, particularly for SMEs and digital-first brands that rely on cross-border marketing efforts. A tax revision could have further encouraged Indian companies to expand their advertising reach, benefiting Gulf-based digital platforms and media outlets,” he added.

Despite this, Talreja welcomed the budget’s emphasis on digital infrastructure, AI innovation, and 5G expansion, predicting a surge in ad tech, programmatic advertising, and AI-driven marketing solutions.

“This is particularly relevant for Gulf-based media, e-commerce, and fintech sectors, where Indian technology and marketing firms are actively engaged. Additionally, the ₹9,000 crore Credit Guarantee Scheme for MSMEs will support Indian startups, many of which are expanding into the GCC, fostering stronger collaborations between Indian and Gulf-based ad tech and marketing firms.”

MSME and Export Growth: Positive Steps but Gaps Remain

For Indian businesses and NRIs engaged in international trade, the budget offers a mix of support and ambiguity.

Chandrashekhar Bhatia, Chairman of GBF Middle East UAE, expressed hope for the new healthcare bill but emphasized the need for greater clarity.

“Till now, income up to Rs 12.75 lakh is tax-free, and the facility of renewal return for four years provides relief. However, the bill’s approach to punishment instead of justice raises concerns,” Bhatia stated.

While he welcomed the finance minister’s initiatives to aid MSME exports and tariff reductions abroad, he noted, “There’s still no good news for NRI investments or dedicated relief for NRIs.”

Agriculture, KYC, and Taxation: Perspectives from Business Leaders

Kamal Vachani, Group Director and Partner at Al Maya Group, and Regional Director of the Electronics and Computer Software Export Promotion Council (ESC), praised the budget’s commitment to agricultural productivity.

“The plan to establish a specialized Makhana Board is a welcome move, with the potential to elevate the Makhana industry and empower farmers,” he noted.

Vachani also highlighted the full tax exemption for income up to Rs 12 lakh, calling it a “major step” that will benefit middle-income taxpayers.

“This could lead to increased financial stability for a large portion of the population, particularly those in middle-income brackets,” he said.

Moreover, the government’s move to increase investment and turnover limits for MSMEs was seen as a promising initiative.

“The plan to simplify the KYC process with a revamped central KYC registry set to roll out in 2025 is a timely and positive development,” Vachani added.

The Road Ahead: Balancing Growth and Challenges

Ahead of the budget, Dr. Sahitya Chaturvedi, Secretary General of the Dubai-based Indian Business Professional Council (IBPC), predicted potential GST hikes or the introduction of additional service levies.

“In terms of income tax, there was hope for relief, particularly for the middle class, with possible reductions in tax rates. For UAE-based enterprises, we are optimistic about the government’s continued efforts to reduce customs duties, in line with the Comprehensive Economic Partnership Agreement (CEPA) signed in February 2022,” Chaturvedi noted.

Also Read:Union Budget 2025: Zero Tax Up to ₹12 Lakh Announced by Nirmala Sitharaman

Leave A Reply

Your email address will not be published.