New Delhi: Union Finance Minister Nirmala Sitharaman announced a reduction in corporate tax, giving big relief to the industry. The government hopes that this will help in tackling the economic slowdown in the country. The government's move has also been welcomed by all.

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With this cut, for the first time, India has also presented itself as a very attractive investment destination in front of the American and other companies that are involved in the business from China. India has also presented a tough challenge to other countries like Vietnam, Thailand, Malaysia, Philippines, which are trying to woo these companies related to electronics and other manufacturing.

Now the new rate of corporate tax for new companies in India will be less than the applicable tax in these countries. According to experts, the impact of this announcement will also be seen in PM Narendra Modi's two important meetings with the corporate world in America. Nilesh Shah, MD, Kotak Mahindra Mutual Fund, says this is a masterstroke to attract investment-oriented companies from China.

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This announcement by Finance Minister Sitharaman is also important because the PM will meet the CEOs and heads of five dozen giant companies in Houston and New York in a six-day US visit starting on Saturday. Many of these companies have plants in China. But they are exploring the possibility of shifting due to rising labor costs and trade-wise. Please note that many companies in the country have put a brake on production for some time. This is also affecting employment.

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