India has reduced taxes on foreign companies to attract more investments from abroad. “The rules and regulations for both Foreign Direct Investment (FDI) in India and overseas investment by Indians will be simplified to facilitate foreign investments, nudge prioritisation and promote opportunities for using the Indian Rupee as a currency for overseas investments,” India’s Finance Minister, Nirmala Sitharaman, said in Parliament on Tuesday.
Presenting the government’s annual budget, Sitharaman announced a 5% cut in corporate tax for foreign companies, lowering the rate to 35%, with the aim of incentivising foreign entities to invest in India. “We are trying to ease the ease of doing business in India,” she stressed. “In every sector where only 26% foreign direct investment was allowed, we raised it to 49%, and then wherever possible, we have raised it to 74%.”
Regarding decentralising investment norms, Sitharaman added that states will be incentivised to implement their business reforms and action plans to make federal investments more attractive.
