Finance Minister Nirmala Sitharaman has reduced corporate tax on domestic firms from 35% to around 25, which includes all surcharges and is applicable on those companies that aren't availing any incentives. The announcement was immediately welcomed by corporate India and the stock markets, which surged over 2,100 points. The NSE Nifty climbed above the 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. That's because this will cost the Centre Rs 1.45 lakh crores this fiscal. India Inc has welcomed the move, saying the most immediate impact will be improving the overall sentiment, allowing more cash in the hands of companies to re-invest in their capacities, and for investors - possibly better dividends.