Capital has choices: Is India’s equity tax regime eroding its global competitiveness?
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Foreign portfolio investors withdrew Rs 4.74 lakh crore from Indian equities since January 2025.
- ✓While India offers strong growth, global investors now weigh taxes and costs before moving money.
- ✓Experts said, "Capital is mobile, but investor confidence is not built on growth prospects alone." Competitive tax regimes remain vital for India.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Moneycontrol
- Reading Speed
- 10 Minute(s)
- Market Focus
- India Economy
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India’s growth story remains compelling, but attracting and retaining foreign capital requires more than strong economic fundamentals. A competitive tax regime, lower transaction costs and predictable policies are equally important.
Capital is mobile, but investor confidence is not built on growth prospects alone. When global investors decide where to deploy their money, they weigh a range of factors: corporate earnings, valuations, currency movements, market liquidity, transaction costs, taxation and policy predictability. A country may offer an attractive long-term growth story, but if the returns it delivers after taxes and costs are less competitive than those available elsewhere, capital will inevitably look for alternatives.
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