Industry reactions:

Abheek Barua, Chief Economist, HDFC Bank: The recent tax move is likely to provide a boost to the economy. We are revising our GDP growth forecast to 6.5 percent from 6.3 percent for 2019-20. The corporate tax cut is likely to not only attract greater foreign investments but could also support some revival in the capex cycle (driven by greater corporate savings).

Jatin Dalal, Chief Financial Officer, Wipro Limited: The government has taken a giant leap in tax reforms. It's a huge boost to corporates and will enhance India's position as a competitive destination for fresh foreign investments. ‘Make in India’ now gets a fresh impetus with reduced rates of corporate income tax. MAT rate reduction is also a bold move. Clarification on grandfathering of buyback tax on inflight buyback programs as of July 5, 2019 is a comforting outcome. This would go a long way in restoring confidence in the market and nudge companies to make fresh investments.

In Box: This decision by the government will not only further India's ease of doing business. but also provide impetus to the manufacturing sector in the country. We believe that the move will enable Indian organizations to compete at par with the developed nations on a global scale.”

“We welcome the latest steps taken by the Government of India to spur growth and boost investor sentiment as such a move was required. The announcement by the Finance Minister in terms of slashing effective corporate tax to 25.17% inclusive of all cess and surcharge for domestic companies will greatly benefit Indian corporates, with the startup sector slated to see an inflow of investments and an uptick in growth. These measures will go a long way in not only augmenting local businesses but also spur the overall growth of the economy’’, said Bhavin Turakhia, Founder and CEO, Flock.

“The latest announcement by the Government of India on the slashing of effective corporate tax to 25.17 percent inclusive of all cess and surcharge for domestic companies, is a welcome step for the Indian economy as it will promote investments and infuse growth. This will provide a much needed fillip across sectors and will also create new employment opportunities. Further, it will accentuate prospects for domestic businesses and accelerate ‘Make in India’ in its true sense”, said Javed Tapia, Managing Director, Clover Infotech.

“The Government of India’s latest announcement on the slashing of effective corporate tax to 25.17 percent inclusive of all cess and surcharge for domestic companies will promote local manufacturing and provide much needed employment opportunities to citizens. Also, these measures will aid the domestic production of energy efficient solutions such as LED lighting and immensely benefit companies operating in this space. We are positive that the economic situation improves in the coming months, which will also boost demand in the consumer electrical segment”, said Kishan Jain, Director, Goldmedal Electricals.

CP Gurnani, MD & CEO, Tech Mahindra, said, “The well-timed tax relief measures are a concrete step towards stabilizing the economy and bolstering investment. This will help spur growth and employment opportunities in key sectors.”

“The lowering of corporate tax is a welcome move and will add much-needed fillip to the government’s Make in India initiatives as well as boost investment opportunities and job creation. This reiterates the government’s commitment towards bolstering the economy and spearheading growth towards the combined national vision of achieving a $5 trillion economy by 2025.” - Rajiv Bhalla, Managing Director, Barco India


We at Jaina welcome the government’s bold decision to reduce corporate tax for Indian companies. It is a boost to companies like us who are especially focused on the “Make in India” initiative and committed to the country's economic betterment. It will help us to divert more funds into such initiatives and that will surely benefit the economy as a whole.says, Pradeep Jain, Managing Director, Jaina Group.

The stock markets responded positively to the relief measures announced , with benchmark indices closing with biggest single-day gain in the last 10 years. Investors got richer by Rs 6,82,938.6 crore after the Sensex added 1,921 points and the Nifty gained 569 points.