New Delhi: A day after the GDP growth figure for the second quarter invited massive backlash for the government, finance minister Nirmala Sitharaman on Saturday said a total of 12 global companies are interested to shift their base from China to India, thanks to the corporate tax cut.
The government in September reduced the corporate tax rate by almost 10 percentage points in a bid to give a boost to sagging economy. The base corporate tax for existing companies has been reduced to 22 per cent from 30 per cent, and for new manufacturing firms incorporated after October 1, 2019, and starting operation before March 31, 2023, it was slashed to 15 per cent from 25 per cent.
“I had said that I will form a task group, which will look into those companies which want to get out of China, and in the meanwhile, I announced the corporate tax cut. There were many companies which were showing interest and wanting to come back.
“So, this task force has already started contacting many of these companies. The last count, I came to know was about 12 of them have already been spoken to, their minds understood, their expectation listed out so that the government can come up with a concrete offer for them to shift from where they are now, so that the ecosystems can get built here, new industries can come,” she said, as quoted by PTI.
Talking about the GDP growth rates, she expressed hope that the next numbers should be better.
India’s growth falling to a more than six-year low of 4.5 per cent in the second quarter of 2019-20 is sub-optimal and below the potential of the economy, the industry pointed out.
(With PTI Inputs)