Reducing corporate tax and removing Angel Tax in the 2024 Indian Budget will help promote economic ties between India and the US, says a leading Indian economist.
Prof. Krishnamurthy Subramanian, Executive Director at the International Monetary Fund (IMF), spoke to business leaders and investors about the Union Budget 2024-25. The event was organized by the Consulate General of India in New York, in collaboration with the US-India Strategic Partnership Forum (USISPF).
Subramanian highlighted the reduction of Corporate Tax from 40 per cent to 35 per cent and the removal of Angel Tax as key measures that would boost India-US economic engagement. The Consulate shared this information on a post on X.
He praised the budget, calling it a move that would strengthen India’s economy and support inclusive development. This aligns with the vision of ‘Viksit Bharat,’ or Developed India by 2047, marking 100 years of independence.
Subramanian noted that the India-US partnership is at an important stage and will grow stronger, benefiting both nations. He mentioned that the tax reduction would encourage foreign companies to set up branches in India, boosting foreign investments.
He also appreciated the removal of the Angel Tax, which he said would be significant for India’s startup ecosystem and encourage external investments, fostering innovation and entrepreneurship.
The budget’s focus on capital expenditure, especially infrastructure, was praised for its potential to boost job creation. Subramanian emphasized the importance of formal job creation through more manufacturing units.
The discussion also covered simplifying tax procedures, fiscal management, investment in digital infrastructure, and reducing customs duty on various goods.
Nishith Desai, from Nishith Desai Associates, discussed simplifying Indian legal and tax procedures in the budget.
Sameer Narang, Chief Economist of ICICI Bank, praised the budget’s fiscal prudence, noting the reduction of the fiscal deficit to 4.9 per cent from an earlier estimate of 5.1 per cent in the interim budget.
Sandeep Chhajed, CEO of IIFL Capital Inc USA, spoke about India’s investment in digital infrastructure, simplification of GST, and reduction in customs duty on various goods.
USISPF posted on X that key discussions at the event included reducing Corporate Tax from 40 per cent to 35 per cent to boost FDI, improving the business environment, investing in India’s infrastructure, strengthening supply chains, and building a clean energy economy.
