Chief Economic Adviser KV Subramanian on Friday said the government had cut the corporate tax rate in an effort to boost investments, PTI reported. The Centre had in September reduced the corporate tax rate for companies that do not avail of any other incentive from 35% to 22%.
Subramanian said the economic growth in the last few quarters has not been like earlier. “The current situation has really provided us the opportunity to try and bring in important structural reforms,” he said at an event, according to ANI. “Corporate tax rate cut, labour reforms, debt capital and credit markets are important for investment to be furthered.”
The Indian economy is facing a sustained decline in growth. The Gross Domestic Product growth rate slipped to a six-year low of 5% in the April-June quarter – the fourth straight quarter of slowdown. The government will release the GDP data for July-September later in the day.
Industrial output in September contracted 4.3% when compared to same month last year. In May, the government had released a report by the National Sample Survey Organisation that showed that India’s unemployment rate rose to a 45-year high of 6.1% in 2017-’18. Another survey showed that the monthly per capita consumption expenditure has declined for the first time in 2017-’18 since the 1970s.