Reserve Bank of India Governor Shaktikanta Das said, “Corporate tax cut is a positive step. India’s corporate tax now becomes very competitive compared to other emerging market economies in ASEAN- and other countries of Asia. So far as international investors are concerned, so far as FDI is concerned, I think, India stands definitely in a very competitive position and should be able to attract higher investments.
So far as domestic investors are concerned, with lower tax, domestic companies now have more cash left with themselves. They’ll be able to undertake more capital expenditure, some of them can deleverage liabilities, which will add strength to their balance sheets,” he added.