New Delhi: India’s recent move to slash corporate tax to revive the country’s ailing economy has earned word of praise from the World Bank. David Malpass, World Bank President, who is in Delhi, on Saturday said the country has taken a good step with the recent cut in the corporate tax rate that will add to growth.
The statement from the World Bank president comes as Union Finance Minister Nirmala Sitharaman on September 27 announced a cut in corporate tax rate from 30 per cent to 22 per cent in a bid to attract manufacturers and revive private investment.
Malpass, who met Prime Minister Narendra Modi earlier in the day, said he discussed various aspects of the financial sector. “We discussed ways that the financial sector can move forward and add to growth within India,” he said.
He went to say that India has a financial sector that has made progress in terms of monitoring of assets, the bankruptcy process and the deepening of the banking system in looking for ways to go forward.
“Prime Minister Modi has a goal of 5 trillion dollar economy. It is a powerful vision and goal. It will be assisted by innovations in the financial sector,” he further added.
Malpass’s visit to India comes in the wake of the recently released World Bank report on Ease of Doing Business 2020 as per which India has improved in ease of doing business. The country has secured 63rd position among 190 countries in ease of doing business. As per the World Bank report, India has appeared among the top 10 improvers for the third time in a row.
According to a report from PTI, Malpass has said the multi-lateral funding agency will continue with USD 6 billion lending target for India.
“World Bank right now has 97 projects with USD 24 billion committed. So, we expect the programme to continue and to reflect on the projects and reforms that were going on in India. Maybe 5-6 billion dollars (USD) per year,” “Malpass was quoted as saying by PTI. After completing a tour in India, he is expected to visit Pakistan, China, and Mexico.