Report
India weighs a capital gains tax cut to lure back foreign investors
Foreign investors hold a record-low 14% of Indian stocks; experts doubt a tax cut alone would reverse outflows.
TLDR
Industry groups and India's capital market regulator are calling for an end to the long-term capital gains tax on foreign portfolio investors. Finance Minister Nirmala Sitharaman said she would consider reviewing it. Foreign investors withdrew a net $18.9 billion from Indian equities in 2025 and more than $30 billion by early November 2026. Experts say eliminating the tax could improve sentiment, but high valuations and disappointing earnings growth may keep investors away.
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