Union Home Minister Amit Shah on Friday said the Modi government was committed in making India a big manufacturing hub and the slashing of corporate tax rates would make the country's markets "much more exciting" for potential investors.
Shah also said "rationalisation" of corporate tax had been a long-pending demand which has now become a reality.
"Modi government is committed to making India a big manufacturing hub and this decision along with previous announcements on relaxing FDI will go a long way in realising this objective. I congratulate PM @narendramodi and FM @nsitharaman for announcing these bold measures," he tweeted.
The home minister also said this move will make India's corporates globally competitive and the country's markets much more exciting for potential investors.
The government has slashed corporate tax rates for companies by almost 10 per cent to 25.17 per cent to bring them at par with Asian rivals such as China and South Korea, as it looked to boost demand and investments.
Finance Minister Nirmala Sitharaman announced the fiscal measures that will cost the government Rs 1.45 lakh crore in revenue annually and may potentially derail the country's fiscal deficit roadmap.