Just after the corporate tax rate cut and the Sensex hike in the country, Finance Minister Nirmala Sitharaman on Sunday urged that any move by the United States electronic giant - Apple to move some of their manufacturing to India will be a great signal to several other foreign companies to move some manufacturing from China to India. The government on Friday slashed the corporate tax rate for companies to 25.17% and even a lower rate to 17.01%, as a move to boost the economic rate.
According to the FM, moving some of the manufacturing of supply is a 'calculated risk'. No other country is offering a 15 per cent rate in South East Asia, she said. The investors had earlier pointed out the high corporate tax rates, however, after the announcements to slash the corporate tax to a lower rate, there is no issue left. Pointing out the English speaking population in India, FM Sitharaman said that it would be easier for the foreign companies to relocate the supply from China.
The Bombay Stock Exchange (BSE) Sensex closed on Friday at an unprecedented 5.32 per cent high at 38,014.62 points, as Finance Minister Nirmala Sitharaman made another big announcement in order to boost the economy. The 30-shared index 2,284.55 points to a peak of 38,378.02 points. The Sensex went up by 1921.15 points. The government had earlier announced Rs 1.45 lakh crore tax benefit on reduction in corporate tax. The corporate tax rate has come down to 25.17% from 29.5% for companies that do not seek exemptions, and 15% for startups and new manufacturing units.
The step to cut corporate tax is historic. It will give a great stimulus to #MakeInIndia, attract private investment from across the globe, improve competitiveness of our private sector, create more jobs and result in a win-win for 130 crore Indians. https://t.co/4yNwqyzImE— Narendra Modi (@narendramodi) September 20, 2019