Chief Economic Adviser KV Subramanian said the private investment is key to economic growth and the recent cut in the corporate tax rate was done to boost investments.
“Private investment is the driver of economic growth. Steps that we are taking, be it corporate tax rate cut, be it code on wages and industrial relations, is to try and create a more favorable environment for investment,” Subramanian said at the FICCI Young Leaders Summit here.
He said the investment is required for sustained economic growth.
“So there is indeed well thought out agenda in implementing these measures and the effects of these will show (results), ” he said.
India’s GDP growth slowed sharply to a pace of 4.5 percent in July-September, hit by a slump in manufacturing output.
The pace of GDP growth has moderated from the 5 percent rate in April-June and 7 percent in the July-September quarter of 2018.
In September, the government had announced a cut in the corporate tax rate to 22 percent from 30 percent.
It also lowered the tax rate for new manufacturing companies to 15 per cent to attract new foreign direct investments.