India corporate tax cut may boost earnings, but unlikely to spur consumer demand

Companies must lower prices, launch new products to woo buyers

Hindustan Unilever, India's largest consumer goods maker, could see as much as 7% jump in earnings thanks to the tax cut. © Reuters

September 23, 2019 21:20 JST

MUMBAI (NewsRise) -- India's surprise move to cut corporate taxes to among the lowest in Asia may boost the profits of banks, automakers, and consumer goods companies, but the measure may not be enough to revive the sagging demand in Asia's third-largest economy.