In a publish addressed to PMO India and the Ministry of Finance, Chadha claimed that India is dropping almost $1 billion in international capital day by day. He famous that since July 2024, following hikes in capital features tax and STT, international outflows have cumulatively touched round $100 billion, making Indian markets much less enticing on the worldwide stage.
He cautioned that such tendencies might undermine India’s potential to draw long-term, affected person danger capital, which is essential to funding the nation’s development ambitions. In keeping with Chadha, the present tax regime dangers reversing the advantages of earlier structural reforms that had enhanced India’s attraction amongst world traders.
Highlighting the federal government’s monitor report of responsiveness, he pointed to previous cases the place suggestions on taxation throughout Items and Providers Tax (GST) and revenue tax led to course corrections and reduction measures. He urged policymakers to as soon as once more take a relook on the present framework to revive investor confidence and stem capital outflows.
“Honourable @PMOIndia and @FinMinIndia… We’re dropping international capital of just about $1 billion a day. Since July 2024, publish hike in capital features tax and STT, now we have misplaced $100 billion and our markets have turn out to be globally unattractive. We want affected person danger capital to fund our development story. It’s undoing the nice work completed by way of numerous reforms. A responsive authorities like yours has at all times taken suggestions on taxation, GST, revenue tax and given reduction,” Chadha’s tweet stated.
Honourable @PMOIndia and @FinMinIndia
We’re dropping Overseas Capital of just about $1 Bn a day. Since July 2024, publish hike in capital acquire tax and STT, now we have misplaced $100 Bn and our markets have turn out to be globally unattractive .we’d like affected person danger capital to fund our development story.… pic.twitter.com/nq6idgnatb
— Gurmeet Chadha (@connectgurmeet) April 2, 2026
The remarks come at a time when Indian fairness markets have been grappling with persistent international institutional investor (FII) promoting, including strain to valuations and general sentiment.Overseas institutional traders (FIIs) have offered home equities price Rs 19,837 crore in simply two classes in April, extending the sell-off to Rs 1.51 lakh crore in 2026. In March, they offered shares price Rs 1,17,775 crore, whereas offloading Rs 35,962 crore price of shares in January. In a reversal of types, they ended up internet patrons at Rs 22,615 crore.
Chadha often feedback on inventory market-related developments and broader financial points, and the most recent publish comes on the again of latest securities transaction tax (STT) guidelines that got here into impact from April 1.
The federal government in its February Funds had introduced an increase in STT expenses on futures and choices (F&O) trades from April 1. The Union Funds 2026 elevated STT by 150% on futures and 50% on choices. The futures section faces the steepest adjustment. STT will rise to 0.05% of notional turnover from 0.02%, a levy utilized to the total contract worth somewhat than simply premiums paid.
The Full Circle Consultants Managing Companion and CIO has been demanding rationalisation in long-term capital features (LTCG) tax to 10% for the long run.
Presently, long-term capital features on listed fairness shares and models of mutual funds are exempt as much as Rs 1.25 lakh. This is applicable to securities held for 12 months or extra. In the meantime, promoting fairness shares inside one yr of holding incurs a short-term capital features (STCG) tax of 20%. It was 15% previous to July 23, 2024.
(Disclaimer: Suggestions, options, views and opinions given by consultants are their very own. These don’t signify the views of The Financial Instances.)
