Executive Director at the International Monetary Fund (IMF) Krishnamurthy Subramanian has said that reduction of corporate tax from 40 per cent to 35 per cent and removal of Angel Tax in the 2024 Indian Budget are among the measures that will promote India-US economic engagement.
Lauding the budget, Subramanian described it as one that would strengthen the foundations of India's economy, foster inclusive development by strategically advancing the vision of 'Viksit Bharat', Developed India @2047, the 100th year of its independence. He pointed out that the India-US partnership is at present at an important juncture and it would further strengthen in the coming years, benefitting both the nations.
He highlighted the reduction of Corporate Tax from 40 per cent to 35 per cent, which would encourage foreign companies to set up their branches and offices in India and boost foreign inflows. He also voiced appreciation for removing the Angel Tax in the current budget which would be significant for India's startup ecosystem and encourage investments from outside, and added that this move would foster innovation and entrepreneurship. He praised the budget for its provision for capital expenditure especially on infrastructure which would boost job creation. However, he also emphasised on formal job creation by setting up more manufacturing units.
