Nirmala Sitharaman‘s big announcement of economic reforms has invited happy reactions from all over the business sector. Leading faces of the business ecosystem have expressed their happiness with these announcements.
Reserve Bank of India Governor Shaktikanta Das termed the tax rate slashing as “bold decision“. He said that it will help in reviving the economy. Shaktikanta Das was speaking at the India Today Conclave in Mumbai when the announcements were made public.
Pawan K Goenka, Managing Director of Mahindra & Mahindra posted a twitter message confirming the same excitement.
Looks like Diwali has come early.
— Pawan K Goenka (@GoenkaPk) September 20, 2019
Even the trading markets saw a rising effect on their stocks. Markets rose suddenly after the announcement by Finance Minister Nirmala Sitharaman, with the benchmark Sensex surging over 1,950 points. Nifty also climbed above 11,250 mark. It has been reported that Sensex and Nifty saw their biggest single-day gains in 10 years. Both saw a jump of over 5% each after the announcements.
Uday Kotak, the MD of Kotak Mahindra Bank described the decision as a bold and progressive step forward. He said that the reduction of corporate tax will now help Indian companies to compete with lower tax jurisdictions like the United States of America.
Reducing corporate tax rate to 25% is big bang reform. Allows Indian companies to compete with lower tax jurisdictions like the U.S. It signals that our government is committed to economic growth and supports legitimate tax abiding companies.A bold, progressive step forward.
— Uday Kotak (@udaykotak) September 20, 2019
Kiran Mazumdar Shaw (Biocon Chairman), one of the leading females of the Indian business industry applauded the finance minister for her bold steps.
Corporate Tax Rate Cut From 30% To 25.2% To Spur Growth- this is a great move which will firmly revive growth n investment. My hats off to FM @nsitharaman for this bold but most needed move. https://t.co/yhvJ9IcMmm
— Kiran Mazumdar Shaw (@kiranshaw) September 20, 2019
Mohandas Pai (Co-founder of Aarin Capital, Bengaluru) said that the change in tax rates will make a dramatic impact on corporate India. It will increase investible funds and reduce the cost of capital. He termed it as the Dream Mini Budget.
Jimeet Modi (Founder and CEO of Samco Securities & Stocknote) expressed his confidence in the decision and said that it will boost the sentiments and will be beneficial in bringing real surplus to the corporates.
Suvodeep Rakshit (Senior Economist in Kotak Institutional Equities) said that the move will help in increasing the retained earnings of the companies. It will then help in forming the investible surplus for future.
Anagha Deodhar (Economist in ICICI Securities) said “This is a major announcement. The corporate tax cut is not a zero-sum game. It is likely to improve cash flows for companies and lead to more investment by them. Companies, in turn, are likely to pass on the benefits to consumers ahead of the festive season.”