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Manufacturing hub Maha to benefit from corporate tax cut: CM

Maharashtra being a major manufacturing hub will benefit from the Centre's decision to reduce corporate tax, Chief Minister Devendra Fadnavis said on Monday.

Union Finance Minister Nirmala Sitharaman had on September 20 slashed the tax rate for companies by almost 10 percentage points to 25.17 per cent, and offered a lower rate to 17.01 per cent for new manufacturing firms.

"It is the boldest decision of the Indian government to encourage investments by corporate houses. Maharashtra being the major manufacturing hub of India will hugely benefit from slashing of corporate tax," Fadnavis said.

Queried on whether budgetary provisions were insufficient to tackle economic slowdown, he said decisions such as the corporate tax move had to be taken from time to time.

"There is global slowdown. The Indian economy is no longer local, it has become global. The budget is not static. One needs to take decisions from time to time to address issues," he said.

He said the ongoing trade war between the United States of America and China may prove beneficial to India as companies were planning to shift their manufacturing bases here.