Chief Economic Adviser Krishnamurthy Subramanian on Friday said that the government recognised the need to cut the corporate tax to boost investments.
The cycle of growth for the last few quarters has not been as it was earlier, Mr Subramanian said at an event and added that “corporate tax rate is important for investments”.
India’s economy grew at 5 per cent in the first quarter of 2019-20 — the slowest pace in more than six years.
The second-quarter GDP number is scheduled to be announced in the evening on Friday.
The government has undertaken a number of measures to arrest the slowdown in growth. In September, it announced a cut in the corporate tax rate to 22 per cent from 30 per cent.
It also lowered the tax rate for new manufacturing companies to 15 per cent to attract new foreign direct investments.