India's corporate tax cut: A defining moment for the next decade?

'Radical' cuts could pay off domestically

September 2019, and specifically the corporation tax cut announcement in India, could be looked back upon as the defining moment that set up the country's economic growth acceleration for the next decade.

Corporation tax (base rate) has been cut from 30% to 22% and to 15% from 25% for any new manufacturing company that commences operations. While India has grown at a rapid pace over the past few decades, that pace has been slowing in the last few quarters and this was becoming endemic and self-perpetuating. India under the microscope: A global investor 'conundrum' Unlike past instances of growth slowdown which were met with quick-fix near-term stimulus boosts, this radical move by the Narendra Modi government to cut corporation tax rates, and its opportune timing is one we think wil...