The recent cut in the corporate tax rate was made to boost investments: CEA
New Delhi, December 9 () Chief economic advisor, KV Subramanian, said Monday that private investment is key to economic growth and that the recent cut in corporate tax rates was made to boost investments.
Private investment is the engine of economic growth. The steps we are taking, whether it be the corporate tax rate cut, or the wage and labor relations code, is to try to create a more favorable investment environment, Subramanian said at the FICCI Young Leaders Summit here.
He said investment is required for sustained economic growth.
Therefore, there is a well thought out agenda to implement these measures and their effects will show (results), he said.
India's GDP growth slowed sharply at a rate of 4.5 percent in July-September, affected by a fall in manufacturing production.
The pace of GDP growth has moderated from the 5 percent rate in April-June and 7 percent in the July-September 2018 quarter.
In September, the government announced a cut in the corporate tax rate from 22% to 22%. It also reduced the tax rate for new manufacturing companies to 15 percent to attract new foreign direct investments. KPM DRR