The making of history: Modi Econ 2.0 has started with a big bang | The Indian Express

The making of history: Modi Econ 2.0 has started with a big bang | The Indian Express

Written by Surjit S Bhalla, Karan Bhasin |Updated: September 28, 2019 11:29:00 am

The writer is Contributing Editor at The Indian Express, and Consulting Editor at Network 18

The making of history: Modi Econ 2.0 has started with a big bang

Modi Econ 2.0 has started with a big bang — the largest corporate tax cut in world history for new manufacturing firms. Surely this is just the beginning.

In one week, the stock market is up more than 8 per cent. (Illustration by: C R Sasikumar)

On September 20, Finance Minister Nirmala Sitharaman announced one of the largest corporate tax cuts in world history. For all companies that don’t avail exemptions or incentives, the new corporate tax rate was set at 22 per cent while for new manufacturing firms established after October 1 (and who start production before 2023), the corporate tax rate was set at 15 per cent. The prevailing corporate rate — 30 per cent. The relevant tax rate is with surcharges and cesses — this has been reduced from 35 per cent to 25 per cent (all firms) and from 35 per cent to 17 per cent (new manufacturing firms).