Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman are planning a series of tax alignments for equities in the coming weeks, sources in the Finance Ministry and NITI Aayog have said.
Nirmala Sitharaman is likely to present the Annual Budget for FY-21 on February 3. “Now a group of officials are preparing the groundwork which is likely to finalized by November-end,” the source added.
In the past three months, Sitharaman has taken a series of bold steps to kick-start growth in Asia’s second-largest economy, which is witnessing a slowdown. The Finance Minister has slashed corporate tax rates to 15 per cent for new units from 30 per cent earlier, aggressively mounted a campaign to sell loss-making public sector companies.
The Indian corporate tax structure is thus the lowest in southeast Asia now. Foreign investor inflows have improved sharply and major indices are less than three per cent away from record highs.
Sources added that comparative studies were being done for longer term money from sovereign wealth funds, pension funds and insurance monies to flow into local equities.