icra also says that globally competitive tax rates will incentivise local manufacturing new delhi the recent cut in corporate tax rates by the indian government would help to boost the investment cycle resulting in a positive impact on overall economic activity claims the credit rating agency icrathe agency also says that the indian automobile industry which has been reeling under distress for the last couple of months is going to be one of the key beneficiaries from this corporate tax rate revisionthe auto industry which accounts for around half of indias manufacturing gdp has been experiencing a continuous downturn for last 10 months in a row there has been repeated appeal from the industry to government for gst reduction however no such move came from the last gst council meeting that took place last friday advt in the current fiscal the indian automotive industry especially the passenger vehicle segment has witnessed one of the worst slides since the last two decades because of multiple factors tighter financing environment for consumers and liquidity crunch faced by dealerships coupled with weak farm income and an overall slowdown in the economic activity has impacted consumer sentiments and purchasing behaviouricra also says that globally competitive tax rates will incentivise local manufacturing it also expects the oems to offer price cuts on vehicles to spur demand read alsoauto inc sees corporate tax cut as investment stirrercorporate tax cut to have minor impact on fiscal deficit niti aayog pavethra ponniah vice president sector head icra said under the current weak demand conditions oems are expected to pass on some of the benefits of tax revision to the end consumers this implies that the price correction in coming months will to an extent address the demand side issues moreover clarity from the government that there is no further gst cess revision will help consumers who were waiting for improved clarity prior to their car purchase decisionindia imported autocomponents worth 176 billion during fy2020 and it is likely to increase further in fy2021 given the transitory phase towards stricter safety and emission norms further given the increasing uschina trade tensions in recent months revision in corporate tax will attract fdi in indian manufacturing sector as the revised tax structure is now in line with other emerging markets forecasts icralast friday union finance minister nirmala sitharaman announced a cut in the corporate tax rate to 251 per cent along with complete exemption from minimum alternate tax mat while earlier the tax rate ranged between 2912 per cent and 3494 per cent etauto published on sep 23 2019 at 0347 pm ist telegram facebook copy link be the first one to comment comment now comments comment now read comment 1 all comments post post find this comment offensive choose your reason below and click on the submit button this will alert our moderators to take actions reasons for reporting foul language defamatory inciting hatred against a certain community out of context spam others report join the community of