India’s corporate tax cut, hailed as one of the biggest economic reforms in the country’s history, is seen as an ideal move to support the manufacturing sector and reverse economic slowdown.
In a surprise move on Friday, Finance Minister Nirmala Sitharaman announced the government will cut nominal corporate tax rate to 22% from 30%. As a result, the effective tax rate including surcharges has been brought down by nearly 10 percentage points to 25.17% from 34.94% across all sectors.
To help further incentivise the manufacturing sector, New Delhi also announced a tax rate of 15% for new manufacturing companies that are set up after October 1...
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