NEW DELHI (AP) — The Indian government has cut most corporate taxes for local companies to about 25% from 30% to help boost growth and encourage investment.

Finance Minister Nirmala Sitharaman said the tax concessions, announced Friday retroactively apply from April 1, the beginning of India's fiscal year.

Share prices surged, with the Sensex in Mumbai jumping more than 5% to its highest level since July.

India's economy was booming until recently but, has slowed in recent months, with growth in manufacturing dropping to 0.6% in the last quarter from 12% a year earlier.

A surprise demonetization in 2016 and a new goods and services tax have taken a dire toll on many businesses.

Sitharaman said that new manufacturing companies incorporated after Oct. 1, will be taxed initially at an effective rate of 17%.

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