UKIBC declares India the global economic standout: Insights from Union Budget

UKIBC hailed the Modi government’s proposal to reduce the corporate tax rate on foreign companies

July 24, 2024

UKIBC welcomes corporate tax cut for foreign companies from 40% to 35 pc%

The UK India Business Council (UKIBC) hailed India as the most exciting economic story globally on Wednesday, commending Finance Minister Nirmala Sitharaman and the government for their focus on enhancing foreign investments and ensuring fiscal stability in the Union Budget 2024-25.

The UKIBC hailed the Modi government’s proposal to reduce the corporate tax rate on foreign companies from 40 to 35 percent and looks forward to continued progress towards parity.

“UKIBC welcomes the announcement on corporate tax reduction for foreign firms, which provides great encouragement to foreign investors. Continued progress towards a level playing field for all investors will help unlock higher levels of international investment in India,” said Richard McCallum, Group Chief Executive Officer, UK India Business Council (UKIBC).

The policy advocacy group said it is also encouraged to note the announcement on foreign direct investment (FDI) and look forward to the details once finalized and published.

“The Indian government has laid down an ambitious plan for ‘Viksit Bharat’ (Developed India) by 2047. The UKIBC and our members strongly support this agenda and can play a strong role across key priority areas such employment and skilling, energy transition, manufacturing, and R&D, among others,” the Council noted.

These are areas in which many UK companies are already invested and actively engaged in India, often working with brilliant Indian partners. A continued focus on policy and ease of doing business-related reform will help unlock increased private investment, including from the UK.

“We also commend the Indian government’s strong economic growth promotion while at the same time delivering fiscal stability and inflation management,” said the Council.

McCallum said, “India is the most exciting economic story in the world today. We see India not simply as a market but as a strategic partner — part of our R&D chain, technology chain, talent chain, and supply chain.”

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