India Inc hails tax cuts, says move will boost investments, spur demand

MNCs may relocate new factories to India as tax cut to 15% for new factories

India Inc leaders said the government’s decision to cut corporation taxes on Friday would increase investments, spur demand, and encourage multi-national corporations to shift their units to India. New manufacturing units will attract tax rates of only 15 per cent.

“This is a big respite and would give the required stimulus to the economy. The reduction of the tax rate will also enable companies optimise their cash flows, leading to increased investments. This is a great step towards the $5-trillion economy,” said Tata group Chairman N Chandrasekaran. 

Chairman of Aditya Birla Group Kumar Mangalam Birla said these steps