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Report: India corporate tax cut sends stocks soaring

India's equity benchmark climbed nearly 6% after the country slashed its corporate tax rate to 22% from 30%, unlocking $20.5 billion for the economy, whose growth has slowed, Bloomberg News reported.

Finance Minister Nirmala Sitharaman said that the cut, which takes effect April 1, 2019, will result in an effective rate of 25.2%, including all levies, and boost investment.

Sitharaman said companies registered Oct. 1 onward will be subject to an effective tax rate of 17.01%.

The move means $20.5 billion in lost revenue for the government, which has set a fiscal deficit target of 3.3% of gross domestic product this year, Bloomberg News reported.

The Bombay Stock Exchange Sensex closed 5.3% higher on Sept. 20.

India's economic growth unexpectedly dropped to its lowest level in more than six years in the April-June quarter. The country's real GDP expanded at an annual rate of 5.0% in the first quarter of fiscal year 2019-2020, down from 8.0% in the year-ago period and lower than the 5.8% expansion in the previous quarter.