India Inc On A High; Gives FM Three Cheers

Says government’s action demonstrates its conviction to pursue economic reforms

The reduction of corporate tax rate to 25 per cent from 35 per cent (22 per cent from 30 per cent without exemptions) and to 15 per cent for new manufacturing units registering after October 1 with a target to start production before 2023 has boosted corporate sentiment, which was hit by sagging economic growth and fall in demand.

Kumar Mangalam Birla, Chairman, Aditya Birla Group, said the government’s decisive steps to pump-prime the economy will lead to a big reset and revive the animal spirits of corporate India.

The reduction in corporate tax will not only lead to economic buoyancy but will also make Indian industry more competitive globally. Above all, these measures only reaffirm the government’s willingness to move beyond incrementalism and act with conviction to pursue economic reforms, he said.

Some of the sectors that will immediately benefit from the cut in tax are banking, FMCG, consumer durables and auto companies.