Sumant Sinha, a notable entrepreneur in the Indian renewable energy sector, has said that reducing corporate tax is a 'concerted move' and 'a positive step'. Talking about energy consumption, he said that India will have to use energy generated from coal before it could completely rely on renewable resources. Sumant Sinha had this conversation with Republic TV on the sidelines of UNGA, happening in the city of New York. He also said that India will need more reforms and changes like corporate tax cuts to attract manufacturers and investors in the country.
“The government has a five-year track record in place now, so any future investor whether corporate or financial has the ability to look at that track record. We know that in the last four years or so, the economy has not been doing well, which a lot of people had recognized by now. We were all really looking for the government to take some concerted action and corporate tax change is one such concerted move. I think it will make India a much more attractive place for manufacturing. This is really positive, having said that, we need more such fairly radicle steps from the government, to really cross that critical threshold. This will really make India a good place for investment. "
Sumant Sinha, adding to what else is needed to boost the economy said, “It’s not just big and dramatic announcements, but it's also really reforming one sector after the other. If you look at the power sector, for example, we need distribution company reforms, that’s essential for having more investments in the power sector. The second is that we need the states to basically create an enabling environment. States cancelling or reneging PPAs is not the way that you can create a good environment for anybody to invest in the country. Investors look at those kinds of things, whether corporate or financial. Therefore, we need the kind of situation where these things are addressed, renew continues through sector by sector basis and we continue to, and we create a more enabling environment for more investments to come. Thus, I say the corporate tax slash was massive and we need more such kinds of things, to really encourage more manufacturers to come in. This is a great option right now because many companies are leaving China and trying to look for alternative manufacturing possibilities elsewhere.”