situation report

India: Government Reduces Corporate Tax Rate to Stimulate Growth

1 MIN READSep 20, 2019 | 15:42 GMT

What Happened: The Indian government has cut its effective corporate tax rate from 35 percent to roughly 25 percent in an attempt to boost economic growth, The Times of India reported Sept. 20.

Why It Matters: The corporate tax cut is part of the Indian government's broader strategy to reinvigorate its economy amid low growth rates, as well as its push to boost local manufacturing industries under its flagship "Make in India" initiative.

Background: India's economic growth rate fell from 8.2 percent in the 2016-17 fiscal year to 7.2 percent in the following period. In the most recent fiscal year ending in March, the rate dropped to 6.8 percent.

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