The immediate benefit of corporate tax cut is increased cash flows to corporate India that will be either channelised into debt reduction or incremental investments in increasing capacity

Rajiv Kumar said that the Modi government has planned to divest stakes in 24 companies to raise Rs 1.3 lakh crore which will help in bridging the budget deficit that arose out of corporate tax cut

In the biggest reduction in 28 years, the Centre has slashed corporate tax by almost 10 percentage points as it looked to pull the economy out of a six-year-low growth and a 45-year-high unemployment by reviving private investments with a Rs 1.45-lakh-crore tax break.

Corporate tax cut: Hailing the move as a \"historic\" step, PM Modi took to twitter to praise the tax cut and said that the announcements made in last few weeks manifest the government's resolve to create more jobs, make India a better place to do business as well as give the much needed impetus to its Make in India programme.

All these moves would cost the government exchequer Rs 1.45 lakh crore. The question though is if a significant part of this money would flow as investments in the short to medium term

The benchmark Sensex spiked over 5 per cent, 2,256 points to 38,349, after the FM Sitharaman slashed basic corporate tax rate to 22 per cent from 30 per cent while for new manufacturing companies it has been cut down to 15 per cent from 25 per cent.

The Rs 250 crore investment will be used to scale up the product and technology team, setting up new business verticals and growing the market share in existing travel verticals, Paytm said in a release.