Slashing of Corporate tax and allocation of CSR for R&D would increase the flow of investment in Manufacturing and Exports: S K Saraf, President, FIEO
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| S K Saraf, President, FIEO |
Hailing the reduction in Corporate Tax Rate
to 22% for domestic companies and 15% for new companies, Mr Sharad Kumar Saraf,
President, FIEO said that such reduction would attract much needed investment
both through FDI route and domestic investment.
The timely move would also help
in attracting investment from companies in China who are looking for new
destinations for expansion or starting a new venture with an eye on US market.
It will encourage investment in the existing domestic companies also giving them
the scale to cater to the huge market of US & China.
The technology
companies in small segment may migrate to medium size companies with equity
participation from overseas. The effective rate of 17.01% is very attractive as
the similar rate in US is about 21% and in China about 25%. The reduced rate
has given further stimulus to investors attracted to India as a market.
Mr Saraf said that the allocation of 2% CSR
fund on incubators, IITs, national laboratories and specified agencies engaged
in conducting research would not only establish industry academia relationship
but would give a push to R&D and product innovation which is need of the
hour in exports particularly as India is focusing now on sunrise sectors of
exports.
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