India’s corporate tax cut to boost smartphone manufacturing

MUMBAI : India’s lower corporate tax rate will help its smartphone industry expand, fuel research and development (R&D) investment and attract higher-value component makers to the world’s second-biggest smartphone market, four top industry executives said.

India slashed its headline corporate tax rate to 22% from 30% on Friday in a surprise gambit aimed at wooing manufacturers and boosting investment in Asia’s third-biggest economy, where unemployment has surged as growth sinks to six-year lows.

The country is currently vying with rivals like Vietnam to attract global firms such as Apple and encourage contract manufacturers like Foxconn and Wistron to step up their presence. China’s trade tussle with the United States, which is pushing smartphone makers to seek alternative markets, is giving that fight an additional edge.