India is considering removing or reducing the long-term capital gains tax on foreign investors to revive capital inflows into its equity market. Foreign ownership of Indian stocks has fallen to an all-time low of 14%, while Finance Minister Nirmala Sitharaman acknowledged capital outflows and said she would consider changes to the tax. Experts say the measure alone will not sustainably reverse the trend because investors prioritize expected returns, earnings visibility and more favorable geopolitical conditions. From January to October, the Nifty 50 lost nearly 9%, making India the third-worst-performing market after Indonesia and Turkey, while Bernstein argues that Indian valuations remain elevated compared with other emerging markets.
Source: Read the original article
