Expat Business Leaders in the UAE View India Budget 2026 with Guarded Optimism
Clear takeaway: Yes — Indian expat business leaders in the UAE broadly welcomed India’s Union Budget 2026, but with measured expectations. The consensus view is that the Budget prioritises stability, fiscal discipline, and long-term growth, while leaving some key sectors under-addressed.
The Budget was presented by on February 1, 2026, at a time when global markets remain volatile and overseas Indians are increasingly active investors in India’s capital markets, real estate, and businesses.
Why UAE-Based Indian Business Leaders Are Largely Supportive
Across sectors — retail, finance, healthcare, real estate, manufacturing, FMCG, and technology — UAE-based Indian executives described Budget 2026 as continuity-driven rather than disruptive. That predictability is seen as a strength.
Chairman of said the Budget reinforces confidence in India’s medium-term trajectory:
“The focus on tax simplification, long-term investment-led development, youth empowerment, and NRI participation reflects confidence in India’s growth path.”
He also highlighted proposals to expand NRI participation under the Portfolio Investment Scheme, raise foreign holding limits, and encourage global Indians to invest directly in India’s growth story.
NRI Reforms: Progress, But Not a Breakthrough
Many UAE-based professionals agreed that while Budget 2026 did not overhaul NRI taxation, it meaningfully reduced friction in compliance and transactions., Chairman of the ICAI Dubai Chapter, pointed to practical improvements:
- Individual NRI investment limits doubled to 10% in listed firms
- TCS reduced to 2% on overseas remittances for education and spending
- Removal of separate TAN requirement for TDS on property sales by resident buyers
These changes, he noted, reflect a genuine “ease of doing business” intent for overseas Indians.
Similarly, described the Budget as fiscally disciplined, reassuring NRIs that no new taxes were introduced on remittances or overseas income.
Fiscal Discipline Strengthens Investor Confidence
One of the strongest endorsements from UAE-based investment professionals is centred on fiscal credibility.
Chief Investment Officer at , highlighted:
- FY27 fiscal deficit targeted at 4.3% of GDP
- Debt-to-GDP ratio projected to fall toward 50% by 2030
- Capital expenditure raised to ₹12.2 lakh crore
According to Valecha, this trajectory lowers long-term borrowing costs and reinforces India’s macroeconomic credibility.
echoed this view, describing the Budget as a shift from deficit targeting toward debt anchoring — a move welcomed by institutional investors.
Healthcare, Manufacturing, and Skills Get a Strong Push
Healthcare leaders praised the scale and structure of sectoral investments.
highlighted:
- ₹10,000 crore Biopharma Shakti initiative
- Customs duty exemption on 17 critical cancer drugs
- Expansion of district hospitals and new AIIMS facilities
- Large-scale training of allied health professionals and caregivers
On manufacturing, Welcomed the push toward semiconductors, electronics components, and MSME funding, calling it vital for reducing import dependence and strengthening supply chains.
Real Estate: Growth Catalyst, Not a Rescue Package
From a property sector perspective, reactions were more restrained.
described the Budget as “capex-driven and structurally pro-investment,” but noted the absence of targeted support for affordable housing.
Affordable housing’s share of total sales, he noted, has fallen sharply since 2019, and the segment needed direct demand-side incentives. That said, indirect benefits — such as REIT monetisation of public assets and infrastructure expansion into Tier-2 and Tier-3 cities — were seen as positives for long-term real estate demand.
What UAE-Based Indian Businesses Are Still Waiting For
Despite broad approval, several gaps were consistently flagged:
- Lack of direct incentives for affordable housing
- Limited clarity on capital gains relief and residency-linked taxation
- A cautious approach to financial services expansion
- Need for faster execution, not just policy signalling
As noted, the framework is sound, but sequencing and scale will matter.
Bottom Line: Stability Wins, Expectations Remain High
For Indian expat business leaders in the UAE, Budget 2026 delivers reassurance more than excitement. It reinforces macro stability, simplifies NRI processes, and channels capital into infrastructure, healthcare, manufacturing, and skills.
At the same time, expectations remain elevated. Affordable housing, deeper financial markets, and sharper sectoral interventions are still on the wishlist as India positions itself for its next growth phase.
Proactive insight: For UAE-based NRIs and businesses, the message is clear — India remains a long-term growth story, but success will increasingly depend on strategic sector selection and careful tax and compliance planning.
