Dear Professional Colleagues,
The Indian economy is in the grip of an unusual depression due to structural and cyclical causes, leading to real GDP growth contracting to 5% in the quarter ending June 2019. Tapering GDP growth required expansionary impulses to revive the economy. To improve sentiment & revive the economy, Government of India has announced slew of measures like improving Ease of Doing Business via facilitation of start-ups, capital infusion in Banks, etc.
Taking this further, the Finance Minister, in order to give impetus to the economy and to boost ‘Make in India’, announced an unprecedented reduction in corporate tax rates. This major policy change will make Indian corporate tax rates internationally competitive and will also incentivize Indian and foreign companies to set up in India in the times of global Trade Wars. India Inc. has applauded this positive tax measure. The new, reduced tax rate on the new manufacturing companies has been like a surgical strike to arrest economic slowdown. RBI has also continued to reduce the repo rate in turn passing the benefit to final consumer. These visionary measures will help to build a new India.