Sitharaman to address FPI concerns over LTCG tax in upcoming Budget
· Business · Times of India, LiveMint
Finance minister Nirmala Sitharaman said the government will consider concerns raised by foreign portfolio investors about India's long-term capital gains tax structure. She noted the tax regime was unchanged in 2023‑24, which saw record foreign inflows, but market conditions have shifted since then with recent FII outflows. Sitharaman highlighted India’s need for capital to sustain growth above 7% and emphasized that taxation is only one factor in investment decisions. The remarks came at the Financial Express Leadership Awards 2026 in New Delhi. Analysts expect the upcoming Budget to address the LTCG issue amid calls for a reduction to boost equity inflows.
Why it matters
Foreign portfolio investors who provide crucial capital for India’s equity markets are watching the Budget for possible LTCG tax cuts. A favorable change could revive inflows and support the government’s goal of maintaining over 7% economic growth.
Read the original report — Times of India
Join us on Telegram
Breaking news the moment it lands. At 10,000 members we ship the Android app.