EXECUTIVE SUMMARY. The Finance Minister, Nirmala Sitharaman has announced the slashing of effective corporate tax to 25.17%, inclusive of all cesses and surcharges, effective from April 1, 2019, for domestic companies. Along with other relief measures this will result in a revenue forgone of Rs 1,450 bn (US$ 20.4 bn). This announcement resulted in a huge surge in the stock market on the expectation of the increase in corporate profits. The critical issue is whether this significant relief to corporate earnings will result in a boost to aggregate demand, investment, employment and sustainable economic growth in the economy. While shareholders will benefit handsomely from the reduction in corporate taxes and increase in profits it is doubtful whether the private corporate sector in a depressed economy where the Whole Price Inflation (WPI) for manufactured goods for August was 0% will play a counter cyclical role and invest in fixed assets.
Will IndusInd’s Much-Needed Reorganisation of Corporate Lending Trigger Another Round of Whistleblowing?
EXECUTIVE SUMMARY. Indusind Bank shareholders are paying a heavy price for senior executive-level reorganisation in Bharat Financial Inclusion (BFI), which backfired as...
By Quentin Webb and Shefali Anand Updated Nov. 22, 2021 7:27 am ET
The bank’s official explanation of a technical glitch needs to be examined, by the RBI, which should commission a probe.
EXECUTIVE SUMMARY. On November 5, 2021, the auspicious day of the Hindu New Year, the Economic Times burst a firecracker of a...