India's businesses had sunk into gloom. Then steep reductions in corporate taxes lifted the malaise
growth is slowing. Corporate earnings and sales have been dismal, with the automotive industry walloped particularly hard. Redundancies are rising, suggesting that a broader downturn is around the corner. Though the government of Narendra Modi has offered a few goodies and pick-me-ups, including abandoning a new levy on foreign investment, India Inc has been sunk in gloom.
Earnings for the big firms in the Nifty 50 index will be boosted by 8-10%, analysts reckon. The biggest winners will be profitable businesses paying the highest rates, such as supermarkets, brewers and consumer-product companies. Firms that already have temporary tax breaks, such asIndia’s tax system is so fiddly that it can reduce even grizzled executives to tears. Accountants were besieged by clients seeking guidance.
A new discounted rate of 15% is supposed to attract manufacturers. That is better than the overall rate in any other large country, and nearly matches low-tax Singapore. The average for all firms in Asia, says Mr Gajaria, is 21%, and for the world 24%. Manufacturers who take the plunge in India will be unable to accept any other incentives, such as accelerated depreciation, credits for research and development, or perks that result from locating in a particular place.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Phoebe Waller-Bridge Signs Overall Deal With AmazonTwo days after Fleabag and Phoebe Waller-Bridge were big winners at the Emmys, the star and creator signed a big overall deal with Amazon. Here's what that means:
Read more »
5 Signs They Won't CommitThere comes a point in your relationship when you want a commitment. Hopefully, you and your partner reach that point at the same time ...
Read more »
Mega-Selling Author Janet Evanovich Signs With The Story FactoryEXCLUSIVE: Janet Evanovich, one of the biggest selling authors in the world with 200 million copies in print and 25 No. 1 New York Times bestsellers, has signed with The Story Factory for exclusive…
Read more »