Recent cut in corporate tax rate was done to boost investments: CEA

Chief Ecomic Adviser Krishnamurthy Subramanian on Monday said that private investment is key to ecomic growth and recent cut in corporate tax rate was done to boost investments.

"Private investment is driver of ecomic growth. Steps that we are taking, be it corporate tax rate cut, be it code on ws and industrial relations, is to try and create a more favorable environment for investment,"  Subramanian said at FICCI Young Leaders Summit here.

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He said investment is required for sustained ecomic growth.

"So re is indeed well thought out nda in implementing se measures and effects of se will show (results), " he said.

India's GDP growth slowed sharply to a pace of 4.5 per cent in July-September, hit by a slump in manufacturing output. 

pace of GDP growth has moderated from 5 per cent rate in April-June and 7 per cent in July-September quarter of 2018.

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In September, government had anunced a cut in corporate tax rate to 22 per cent from 30 per cent.

It also lowered tax rate for new manufacturing companies to 15 per cent to attract new foreign direct investments.

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