The cut in the tax rate for foreign companies from 40 percent to 35 percent, along with the abolition of the 2 percent equalisation levy, came as a surprise, according to Deloitte India Partner Rohinton Sidhwa. This unexpected move is expected to make India a more attractive destination for foreign investment by reducing the tax burden on international businesses operating in the country. The decision aligns with the government's broader strategy to stimulate economic growth and competitiveness, potentially leading to increased foreign direct investment and enhanced economic activity within India.