Reduction of corporate tax in Budget will promote India-US trade: Ex-CEA

Professor Krishnamurthy Subramanian said that the removal of Angel Tax would be significant for India's startup ecosystem and encourage investments from outside

Union Budget 2024-25 announcements, including a reduction in corporate tax and the removal of Angel Tax, will promote India-US economic engagement, according to Krishnamurthy Subramanian, who served as the 17th Chief Economic Adviser to the Government of India.

Addressing a gathering of the business community and investors on the Union Budget 2024-25 at an event organised by the Consulate General of India in New York, Subramanian said the India-US partnership is at present at an important juncture and it would further strengthen in the coming years, benefitting both the nations.

Dr. K. Subramanian @SubramanianKri, Executive Director of India to IMF addressed a gathering of business community & investors on Indian budget 2024-25 in an event organised by @IndiainNewYork in collaboration with @USISPForum.

Dr. Subramanian highlighted reduction of Corporate… pic.twitter.com/gSxcG6N089

— India in New York (@IndiainNewYork) July 27, 2024

Subramanian, who currently serves as Executive Director at the International Monetary Fund (IMF), lauded the Union Budget while describing it as one that would “strengthen the foundations of India’s economy, foster inclusive development by strategically advancing the vision of Viksit Bharat,” according to a press release by the Consulate.

 

During the event, held in collaboration with the US-India Strategic Partnership Forum, Subramanian said that the reduction of corporate tax from 40 per cent to 35 per cent would encourage foreign companies to set up their branches and offices in India and boost foreign inflows.

He further said that the removal of Angel Tax would be significant for India’s startup ecosystem and encourage investments from outside. He also praised the budget for its provision for capital expenditure, especially on infrastructure which would boost job creation. However, he added that India needs formal job creation and more manufacturing units should be set up for the same, the release said.

The discussion also focussed on the announcement of simplifying tax procedures, fiscal management, Indian investment in digital infrastructure, and reduction of customs duty on a range of goods in the Budget.

USISPF and @IndiainNewYork hosted a discussion on #Budget2024-25. Keynote address by Dr. @SubramanianKri, Executive Director of India at @IMFNews addressed USISPF members, investors, and the business community.

Remarks by Dr. Nishith Desai, Founder of @ndalaw1989, and Mr.… pic.twitter.com/9Vh935kmIo

— US-India Strategic Partnership Forum (@USISPForum) July 30, 2024

Meanwhile, the US-India Strategic Partnership Forum said in a post on X that key discussions at the event focussed on the reduction of corporate tax from 40 per cent to 35 per cent to boost FDI, improving the ease of doing business environment, investing in India's infrastructure, strengthening supply chains, and building a clean energy economy.