Indian businesses and professionals in Dubai have broadly welcomed India’s Union Budget 2026–27, describing it as a growth-oriented roadmap with significant implications for cross-border trade and investment between India and the UAE.
The Indian Business and Professional Council Dubai(IBPC), together with the Taxation Society and the India Club, hosted a dialogue to assess the budget’s impact on UAE-based Indian enterprises and investors. Participants highlighted the focus on Yuva Shakti, infrastructure expansion and tax reforms as measures likely to strengthen the Indo-UAE relations.
Discussions on India’s Union Budget 2026–27 in Dubai highlighted major public spending plans, including a capital expenditure allocation of 12.2 lakh crore rupees for the coming financial year and a 10,000 crore rupee SME growth fund.
The budget also proposes investments in seven high-speed rail corridors, 20 new national waterways, and initiatives in tier-two and tier-three cities. UAE-based Indian businesses welcomed the scale and ambition of the budget. Experts noted that continued investment in smaller cities, the creation of city economic regions, and the expansion of manufacturing across strategic sectors are expected to create new sourcing, partnership, and investment opportunities for companies operating between India and the UAE. The budget’s focus on infrastructure, SMEs, and regional development is being seen as a significant boost for cross-border trade and long-term economic engagement in the Indo-UAE corridor.
Commenting on the fiscal direction, IBPC Dubai chairman Siddharth Balachandran said, “In the words of the IMF, India sets the tone for the fiscal future of the world.” He added that the reform-oriented budget introduced “bold and, in some cases, surprising changes to the tax regime,” which could reshape investor sentiment and business confidence.
Jai Prakash Agarwal, Chairman of The Institute of Chartered Accountants of India (ICAI) Dubai Chapter, said, “No major tax overhauls for NRIs, but glimpses of ease of doing business are seen. Investment limits doubled to 10% in listed firms, TCS reduced to 2% on foreign remittances for education and overseas spends, and TAN requirements scrapped for TDS on property sales, these steps show that NRI voices are being heard and will help boost investments in India.”
