Also read: India can’t make up its mind on PSUs, 30 years after liberalisationCorporate earnings in India had been on a decline even before the covid outbreak.
Slow economic growth and weak consumption demand had severely impacted companies in the last financial year itself. Cut in corporate tax announced by the government in September last year had aided in business growth to some extent.India Inc saw pick-up in profitability in July-September after a year-long slump as consumers shrugged off the pandemic to deliver a surprise rebound in consumption while cost-saving measures continued to keep expenses under control.