On Friday, Prime Minister Narendra Modi has said that his government’s corporate tax cut was a “historic” and “win-win” for 130 Crores Indians. It would offer a great stimulus to his flagship ‘Made-in-India’ Scheme besides attracting investments, said the Indian Prime Minister.
After the Finance Minister of India, Nirmala Sitharaman has announced the measures, PM Modi tweets: “The step to cut corporate tax is historic. It is a great stimulus to #MakeInIndia, attract private investment from across the globe, improve the competitiveness of our private sector, create more jobs and result in a win-win for 130 crore Indians.”
He continued that the announcements in the last few weeks “clearly demonstrate that our government is leaving no stone unturned to make India a better place to do business, improve opportunities for all sections of society and increase prosperity to make India a $5 trillion economy.”
Ms. Sitharaman has announced that corporate tax rates on domestic firms would be lessened from 35 percent to 25.2 percent to strengthen the economy after a six-year low in GDP growth and targetted a 45-year high unemployment rate.
The updated tax structure, which is effective from April, will bring corporate tax rates of India at par with the Asian countries.
The S&P BSE Sensex has bound to a 10-year high after the announcement and Indian Rupee has fallen by 0.6 percent against the US Dollar.
Domestic firms have greeted the move as the biggest in measures announced by the center-ruling government in tranches. PM Modi has also shared the key points of the move in his tweet.