Page 28 - Nuvama | IC Report 2023

• DE-GLOBALISATION • DEREGULATION • DEBT • DEMOGRAPHY • DEMOCRACY

Corporate tax rate including surcharge
Exhibit 6: 40
India’s corporate
tax rate is now 35 34
competitive 35
30 30
30
(%) 25 25 25 25
25 24
21
20 20
20
15
15

10 Korea US
India (Old) Brazil Philippines Japan India (New) China Indonesia Malaysia Thailand Taiwan India (New Mfg)

Source: OECD, Nuvama Research

Third, the government has introduced its flagship scheme – Production Linked Incentives (PLI) – to
boost domestic manufacturing, which is generating good interest among businesses. The scheme now
covers a wide range of industries such as electronics, chemicals and apparels, among others.
We argue such policy-making shall also help India gain prominence in global supply chains. In fact,
it seems to be already working well in electronics, wherein exports have zoomed higher (refer to
Manufacturing in the Opportunities section of the book).

21
Exhibit 7:
Upshift in India’s
electronics
exports
17
(USDbn, 12M sum) 13

9

5
Oct ‘10 Oct ‘12 Oct ‘14 Oct ‘16 Oct ‘18 Oct ‘20 Oct ‘22
India’s electronic goods exports
Source: CMIE, Nuvama Research

26