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Data: Why Indian firms are reluctant to invest despite tax cut and high profits -Vignesh Radhakrishnan and Jasmin Nihalani

-The Hindu

Consumer demand started to decline before the pandemic and worsened after outbreak

In September, Finance Minister Nirmala Sitharaman was anguished that industry was holding back from investing in manufacturing despite a significant cut in corporate tax rates in 2019.

The slowdown in corporate investment did not happen because companies were making losses. In fact, private companies, boosted by considerable tax cuts, made windfall profits. A State Bank of India analysis shows that tax cuts contributed 19% to the top line of companies during the pandemic. But this did not result in increased investments.

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