In a publish addressed to PMO India and the Ministry of Finance, Chadha claimed that India is dropping almost $1 billion in overseas capital every day. He famous that since July 2024, following hikes in capital good points tax and STT, overseas outflows have cumulatively touched round $100 billion, making Indian markets much less enticing on the worldwide stage.
He cautioned that such developments might undermine India’s capacity to draw long-term, affected person danger capital, which is essential to funding the nation’s development ambitions. In line with Chadha, the present tax regime dangers reversing the advantages of earlier structural reforms that had enhanced India’s attraction amongst international buyers.
Highlighting the federal government’s observe file of responsiveness, he pointed to previous situations the place suggestions on taxation throughout Items and Providers Tax (GST) and earnings tax led to course corrections and aid 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 overseas capital of virtually $1 billion a day. Since July 2024, publish hike in capital good points tax and STT, we’ve got misplaced $100 billion and our markets have develop into globally unattractive. We want affected person danger capital to fund our development story. It’s undoing the great work finished by way of varied reforms. A responsive authorities like yours has all the time taken suggestions on taxation, GST, earnings tax and given aid,” Chadha’s tweet stated.
Honourable @PMOIndia and @FinMinIndia
We’re dropping Overseas Capital of virtually $1 Bn a day. Since July 2024, publish hike in capital acquire tax and STT, we’ve got misplaced $100 Bn and our markets have develop into 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 overseas institutional investor (FII) promoting, including strain to valuations and general sentiment.Overseas institutional buyers (FIIs) have bought 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 bought 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 web consumers at Rs 22,615 crore.
Chadha usually feedback on inventory market-related developments and broader financial points, and the most recent publish comes on the again of recent securities transaction tax (STT) guidelines that got here into impact from April 1.
The federal government in its February Price range had introduced an increase in STT expenses on futures and choices (F&O) trades from April 1. The Union Price range 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 complete contract worth fairly than simply premiums paid.
The Full Circle Consultants Managing Companion and CIO has been demanding rationalisation in long-term capital good points (LTCG) tax to 10% for the long run.
At the moment, long-term capital good points on listed fairness shares and items 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 12 months of holding incurs a short-term capital good points (STCG) tax of 20%. It was 15% previous to July 23, 2024.
(Disclaimer: Suggestions, solutions, views and opinions given by consultants are their very own. These don’t symbolize the views of The Financial Instances.)
