Home / Knowledge / News / Policy / Corporate tax cut to make India manufacturing hub: FM

Corporate tax cut to make India manufacturing hub: FM

Dec '19
Pic: Shutterstock
Pic: Shutterstock
The corporate tax cut bonanza, which would result in revenue foregone of ₹1.45 lakh crore, would help India become a manufacturing hub by boosting fresh investments in the manufacturing sector, finance minister Nirmala Sitharaman said while moving the Taxation Laws (Amendment) Bill, 2019, for consideration and passage in parliament lower house.

The lower house yesterday passed the bill through voice vote and it will be taken up next in the upper house. It will replace the Ordinance promulgated on September 20.

During discussions in the house on the bill, Sitharaman said it was too early to elaborate on the impact of the move, but added that already there were investment green shoots with several foreign companies evincing interest in the new regime that provides for 15 per cent corporate tax rate, according to a news agency report.

“The whole objective of reducing corporate tax was to drive and attract manufacturing investments from all over the world. This had prompted us to introduce a special rate of 15 per cent for new investments from new companies that go into operation between October 2019 to 2023,” she said.

Rejecting suggestions regarding extending the concessional regime of 15 per cent corporate tax rate to existing manufacturing companies that want to undertake expansion, Sitharaman said the government does not want to complicate the system and the intention of our September 20 move is to invite fresh investments, she said.

The finance minister ruled out cuts in personal income tax along with the reduced corporate tax rate regime, stating that she would rather like to deal with it separately on its merit.

She also ruled out extending the concessional corporate tax regime to limited liability partnerships or partnership firms, saying their structure was different from a corporate vehicle and therefore do not merit the concessional tax regime.

Sitharaman said she will spend more time to understand if the economic slowdown is cyclical or structural.

Fibre2Fashion News Desk (DS)

Must ReadView All

Pic: Shutterstock

Textiles | On 5th Dec 2019

Vietnam, Egypt should resolve issues to raise trade: MoIT

The two-way Egypt-Vietnam trade value of $470 million last year does...

Pic: Lenzing

Textiles | On 5th Dec 2019

Lenzing has vision towards net-zero CO2 emissions by 2050

The Lenzing group, a recognised leader in climate action, recently...

Pic: Shutterstock

Textiles | On 5th Dec 2019

Pak releases Rs 81.132 mn for textile industry development

Pakistan's ministry of planning development and reforms has so far...

Interviews View All

Mohammad Mamun Ar Rashid, UL VS Bangladesh Ltd

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Darshan Mehta, Infinium Polychem

Darshan Mehta
Infinium Polychem

We are spending double digit figures on R&D

Top executives, Textile industry

Top executives
Textile industry

Union budget 2018-19 will have positive impact on apparel industry

Will Qian,

Will Qian

Honghua Digital Technology Stock Co., Ltd. specialises in the R&D,...

Wolfgang Muller,

Wolfgang Muller

Mayer & Cie is a leading global manufacturer of circular knitting...

Marcel Moser,

Marcel Moser

Switzerland-based Benninger is a leading manufacturer of technologically...

Pierre Wiertz, EDANA

Pierre Wiertz

EDANA, the international association serving the nonwovens and related...

Johan Berlin, InvestKonsult Sweden AB

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Keith McMillen, Bebop Sensors

Keith McMillen
Bebop Sensors

Bebop Sensors' smart fabrics allows for a new level of interaction between ...

Madhu Jain, Madhu Jain

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Chandani Sahi, By Chandani

Chandani Sahi
By Chandani

By Chandani is a womenswear prêt couture brand with fusion silhouettes by...

Hemant & Nandita, Hemant & Nandita

Hemant & Nandita
Hemant & Nandita

The designer duo of Hemant & Nandita are known for being inspired by...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

December 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Advanced Search