India sees a rise in stock after reducing corporate taxes

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To revive India’s economy, Nirmala Sitharaman, finance minister, decreased corporate tax rates from 30 percent to 22 percent - the lowest level in India post-independence. New manufacturing companies will be at an advantage, their basic tax rate will be reduced from 25 percent to 15 percent, if they incorporate after October 1 and their production is effective by March 31, 2023. Indian entrepreneurs have depicted the cut as a transformative and confident act. Following the cut, Indian stocks increased considerably, closing 5.5 percent on the BSE Sensex.

 

The Financial Times, Amy Kazmin, September 20th 2019