NEW DELHI: In the midst of rising US-China trade tensions, Finance Minister Nirmala Sitharaman’s announcement on corporate tax is of enormous strategic importance in the long term, said Shamika Ravi, member of the Economic Advisory Council.
“Whether President Donald Trump announces something during PM Modi's visit (to Houston) or not, you have to look at this from an economic-strategic interest of the country from a long term perspective.
If there is an announcement, even better,” she told News18. “Many firms are trying to relocate out of China given the trade war. This means it is a window of opportunity for India,” she added.
In a major boost to employment and economic activity, the government on Friday slashed corporate tax rate for domestic companies to 25.17% inclusive of all cess and surcharges for domestic companies, a move that was largely welcomed by India Inc as the gloom of an economic downturn looms large.
This historic moves comes two days ahead of the Modi’s visit to Houston where he will address an audience of 50,000 in the company of Congressmen, businessmen and Trump.