Union Finance Minister Nirmala Sitharaman's proposal to slash corporate tax for domestic companies and new domestic manufacturing companies has been appreciated by the SBI chairman, Rajnish Kumar, who said the move will effectively integrate India with the global supply chain and a boost to Make in India campaign!.

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In an official release, the SBI chairman said, “The large reduction in corporate taxes across the spectrum of all companies is perhaps the boldest reform in the last 28 years! Such a rate cut will boost corporate bottomline, facilitate a reduction in product prices. Additionally, the move to incentivise setting up new manufacturing units in India comes at the most opportune time for foreign companies who could be actively looking for opportunities to invest globally!"

Rajnish Kumar added, "This move could also materially lead to India effectively integrating with the global supply chain and a boost to Make in India campaign.”

Notably, the FM today proposed to cut cut effective corporate tax rate to 25.17 per cent. and this will include all surcharges and cesses for corporates. Addressing the media in Goa ahead of the GST Council meeting, she said the new tax rate will be made effective from current fiscal.

The latest steps announced by the FM will incur Rs 1.45 lakh crore expenditure on the government's exchequer.

Earlier on the the mega-merger of 10 PSU banks into four, the SBI Chairman had said, “..Announcements on bank mergers is a cohesive and a clear recognition that bigger banks have that much more ability to absorb shocks, reap economies of scale as well as the capacity to raise resources without depending unduly on the exchequer."

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He further stated that the announcements also "underline the fact that the government recognizes the importance of a robust banking system in achieving the goal of $ 5 trillion economy as bigger banks will be better armed to meet the credit needs of a fast growing economy like ours."