India Made Corporate Tax 40% Lower Than Regional Competitors
When comparing manufacturing destinations across Asia, one number stands out: India’s 𝟭𝟱% corporate tax for new manufacturing companies.
China charges 𝟮𝟱%. Vietnam sits at 𝟮𝟬%. Bangladesh averages 𝟮𝟳.𝟱%. India’s reformed structure positions manufacturing at 𝟭𝟱-𝟮𝟮% effective rates.
𝗧𝗵𝗲 𝗡𝘂𝗺𝗯𝗲𝗿𝘀
Manufacturing companies established after October 2019 qualify for 𝟭𝟱% (17.16% effective). Existing companies opt for 𝟮𝟮% (25.17% effective).
Foreign companies saw reductions from 𝟰𝟬% to 𝟯𝟱%. Small companies under ₹400 crore turnover pay 𝟮𝟱%.
China’s manufacturing wages exceed $𝟵 per hour versus India’s $𝟯.
𝗚𝗦𝗧 𝗦𝗶𝗺𝗽𝗹𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻
GST eliminated cascading effects. One tax replaced 𝟭𝟳 different indirect taxes across 𝟮𝟵 states.
Interstate checkpoints disappeared. Input credits flow seamlessly. Logistics costs dropped 𝟮𝟬-𝟯𝟬% for multi-state operations.
Digital portal processes registrations, returns, and refunds online.
𝗣𝗟𝗜 𝗜𝗻𝗰𝗲𝗻𝘁𝗶𝘃𝗲𝘀
Production Linked Incentive allocated ₹𝟭.𝟵𝟳 lakh crore across 𝟭𝟰 sectors. By March 2025, ₹𝟭.𝟳𝟲 lakh crore materialized.
Electronics production surged 𝟭𝟰𝟲% from ₹2.13 lakh crore to ₹5.25 lakh crore. Over 𝟭.𝟮 million jobs created.
Automotive funding jumped from ₹347 crore to ₹𝟮,𝟴𝟭𝟵 crore. Textiles rose from ₹45 crore to ₹𝟭,𝟭𝟰𝟴 crore in 2025-26.
𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝘃𝗲 𝗖𝗼𝗻𝘁𝗲𝘅𝘁
Vietnam offers zone incentives but lacks scale. China provides R&D deductions but faces rising compliance costs.
Bangladesh announced incentives amid political transitions. India’s reforms remain stable with consistent execution.
Manufacturing cost index: India 𝟳𝟮-𝟳𝟴, Thailand 𝟴𝟯-𝟴𝟳, China 𝟭𝟬𝟬.
Lower tax plus PLI plus GST creates compounding advantages. Companies reinvest savings into expansion rather than liability.
𝗧𝗵𝗲 𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻
Tax efficiency drives competitiveness. India restructured its architecture for global manufacturing investment.
Production costs drop 15-22% through tax optimization alone.
Is your strategy factoring this advantage?
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