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Recent cut in corporate tax rate was done to boost investments: CEA

PTI   

Recent cut in corporate tax rate was done to boost investments: CEA
Business1 min read
New Delhi, Dec 9 () Chief Economic Adviser KV Subramanian on Monday said private investment is key to economic growth and the recent cut in corporate tax rate was done to boost investments.

"Private investment is the driver of economic growth. Steps that we are taking, be it corporate tax rate cut, be it code on wages and industrial relations, is to try and create a more favourable environment for investment," Subramanian said at the FICCI Young Leaders Summit here.

He said investment is required for a sustained economic growth.

"So there is indeed well thought out agenda in implementing these measures and the effects of these will show (results), " he said.

India's GDP growth slowed sharply to a pace of 4.5 per cent in the July-September, hit by a slump in manufacturing output.

The pace of GDP growth has moderated from the 5 per cent rate in April-June and 7 per cent in July-September quarter of 2018.

In September, the government had announced a cut in the corporate tax rate to 22 per cent from 30 per cent.

It also lowered the tax rate for new manufacturing companies to 15 per cent to attract new foreign direct investments. KPM DRR

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