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India considers tax cut to attract foreign investors amid record capital outflows
Foreign holdings in Indian equities have fallen to an all-time low of 14%, prompting calls from the PHD Chamber and regulators to scrap long‑term capital gains tax for foreign portfolio investors. Finance Minister Nirmala Sitharaman acknowledged the outflows and said the tax will be reviewed. Analysts note that while a tax cut could improve sentiment, broader issues such as earnings growth, geopolitical risks, and valuation premiums remain. Recent data show foreign investors withdrew $30 billion this year, and India’s Nifty 50 is down about 9% YTD, trading at a forward PE of 18.6 versus peers.