Explained: How the corporate tax cut will impact the economy

Finance Minister Nirmala Sitharaman announced that the effective corporate tax will be cut to 22 percent without exemptions.

This comes at a time when the country was facing an economic slowdown with the GDP growth in the June quarter being the slowest in the past six years.

Moneycontrol Deputy Executive Editor Gaurav Chaudhary explains how the rate cut will benefit corporates; lower manufacturing taxes will help MSMEs, and make India an attractive investment destination.