CORPORATE TAXATION AND GROWTH IMPACTS AT EY INDIA

Abstract

Corporate taxes play an important role in the stability of the economy, investment trends, and budgetary stability. Changes in corporate tax policy have had a significant impact on business competitiveness and the volume of foreign investment in India, notably in the aftermath of tax reforms and lower corporation tax rates. According to a research conducted by EY India, an equal and transparent corporate tax structure promotes innovation, enhances the economy as a whole, and fosters startup ecosystems. The implementation of anonymous assessment, the removal of the Dividend Distribution Tax (DDT), and "Make in India" manufacturing incentives have all had a big impact on how corporations operate. This research looks at the empirical relationship between company tax reforms and macroeconomic growth indices, taking into account both the immediate fiscal trade-offs and the long-term developmental gains. The findings show that a stable, equitable, and effective tax system boosts compliance and improves India's reputation as a popular international investment destination.