Indian firms remain heavily taxed, how South Asia can contribute a third of global growth; all this and more on Moneycontrol Pro

The corporate tax cut was hailed as a big game-changer for Indian companies.

Moneycontrol.com October 31, 2019 13:24:15 IST
Indian firms remain heavily taxed, how South Asia can contribute a third of global growth; all this and more on Moneycontrol Pro
  • Though the govt has done the right thing in cutting corporate tax rates, surcharges, cess, various taxes on dividend defeats the purpose

  • India's GDP per capita at constant prices and in purchasing power parity terms, is expected to be around 13% of that of the US this yea

  • In DLF, a shallow retracement and follow-through breakout are offering an affordable trading opportunity in derivatives

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Indian firms remain heavily taxed how South Asia can contribute a third of global growth all this and more on Moneycontrol Pro

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Indian companies remain heavily taxed despite the corporate tax cut

The corporate tax cut was hailed as a big game-changer for Indian companies. Indeed, initial reports after the tax cut was announced pointed out that India would now be among the lowest taxed countries globally. That, in turn, would making manufacturing in India competitive as companies rushed to invest and set up new factories.

However, analysis that has emerged in the last month point to results that aren't too heartening. Though the Indian government has done the right thing in cutting corporate tax rates, the surcharges, cess, various taxes on dividend defeats the purpose. The sooner the Indian government removes the dividend distribution tax and the surcharge and cess, the better. Read more.

How South Asia can contribute a third of global growth in 20 years

Can India’s per capita income, in terms of purchasing power parity, be almost half that of the United States by 2040? The International Monetary Fund (IMF), in a section on South Asia in its latest Regional Economic Outlook for Asia and the Pacific, says that can happen, provided of course we go in for a stiff dose of reform. For perspective, India’s GDP per capita at constant prices and in purchasing power parity terms, is expected to be around 13 percent of that of the US this year. How is this feat going to be achieved? Well, the demographic dividend is one big factor—around 130 million people are expected to be added to the Indian workforce between now and 2030. There is, however, one big problem—people of working age must have jobs. Read more.

Control Print – why investors should take this idea seriously

Our in-house research team had recommended Control Print, a maker of coding equipment, a few months back. The stock has not disappointed with a return of 12.3 percent (from 19th August 2019 till date) compared to a 7 percent return from the benchmark Nifty. However, the journey isn’t over yet. Our analyst sees earnings momentum in the company and the numbers for the September 2019 quarter are testimony to the improving fundamentals. Read more.

Picks from our technical analysts

DLF: In DLF, a shallow retracement and follow-through breakout are offering an affordable trading opportunity in derivatives. Click here for a futures trading idea.

Aurobindo Pharma: The stock of Aurobindo Pharma is showing a bearish trend. Its volatility is also high. Click here for an options trading idea.

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