Amid talks that the cut in corporate income tax recently announced by Finance Minister Nirmala Sitharaman will pose greater challenge in maintaining the fiscal deficit, Reserve Bank of India (RBI) Governor, Shaktikanta Das on Tuesday said that Corporate tax cut is a positive step. India's corporate tax now has become very competitive compared to other emerging market economies in ASEAN and other parts of Asia.
So far as international investors are concerned, so far as FDI is concerned, I think India stands definitely in a very competitive position, and should be able to attract higher investments, he added.
The RBI governor said that now the domestic investors and companies with lower tax, will have more cash left with themselves. They'll be able to undertake more capital expenditure, some of them can deleverage liabilities which will add strength to their balance sheets.