The Economic Times

Pull it, not just for better FPIs: Scrap FPI capital gains tax to boost inflows, strengthen rupee and cut fiscal deficit

Scrapping the long-term capital gains tax could significantly enhance foreign portfolio investment in India. This move would likely lead to a stronger rupee and reduced fiscal deficit for the government. Historical data suggests that foreign capital flows have a direct correlation with the value of the rupee. The elimination of this tax could also support higher valuations and better disinvestment proceeds.