New schemes to tap Trump's China stance weighed

The government is considering offering fiscal incentives to attract fresh investments to harness opportunities emanating from US President Donald Trump's strong anti-China stance and to boost India's growth, including a second version of the 15% concessional corporate tax scheme for specific sectors, people aware of the development said.

- Rajeev Jayaswal

NEW DELHI:

The government is considering a proposal on the launch of a modified version of the Taxation Laws (Amendment) Ordinance, 2019 that substantially reduced corporate tax with an intent to attract fresh investment, create jobs and stimulate overall economic growth, they added, requesting anonymity. While the scheme is still work in progress, it is likely that it will find mention in the Union budget that will be presented on February 1, one of them said.

"Mainly, two factors favour such tax incentives. One, America's anti-China stance could see new investments coming to countries like India, Indonesia and Vietnam, depending on their competitive edge. The other factor is domestic, where fresh investments are necessary to maintain India's growth momentum that saw some slowing in the second quarter of current financial year," this person added, identifying manufacturing as one sector that desperately needs fiscal incentives. India's GDP growth slowed to a seven-quarter low of 5.4% in the second quarter of 2024-25.