The centre today reduced corporate tax on domestic firms in a bid to boost the sluggish economy, hurt by slowing demand across sectors, especially manufacturing that is among the highest contributors to the Gross Domestic Product (GDP). The markets immediately rose after the announcement by Finance Minister Nirmala Sitharaman, with the S&P BSE Sensex surging over 2,100 points and the NSE Nifty climbing above 11,250 mark, after days of choppy trading. While domestic companies have a lot to cheer about, the Finance Minister said she is "conscious" of the effect the announcement would have on India's fiscal deficit target.
