Union Home Minister Amit Shah on Friday said the Modi government was committed in making India a big manufacturing hub and the slashing of corporate tax rates would make the country’s markets “much more exciting” for potential investors.
Shah also said rationalisation of corporate tax had been a long pending demand which has now become a reality, adding that this move will make the corporates globally competitive.
“Modi government is committed to making India a big manufacturing hub and this decision along with previous announcements on relaxing FDI will go a long way in realising this objective. I congratulate PM @narendramodi and FM @nsitharaman for announcing these bold measures,” he tweeted.
The government on Friday slashed corporate tax rates for domestic firms from 30% to 22% and for new manufacturing companies from 25% to 15% to boost economic growth.
Finance Minister Nirmala Sitharaman announced the fiscal measures that will cost the government Rs 1.45 lakh crore in revenue annually and may potentially derail the country’s fiscal deficit roadmap.