Neutral impactEconomy
LTCG tax relief on cards? FM acknowledges FPI concerns as SEBI, FICCI push for reforms in Budget 2027
Mint 1 hr ago·4 Nov 2026, 3:21 pm
Finance Minister Nirmala Sitharaman has acknowledged that the government is actively reviewing investor concerns regarding the current investment climate. This follows recent pressure from foreign portfolio investors (FPIs) and industry bodies like SEBI and FICCI, who have urged the Finance Ministry to consider changes to the Long-Term Capital Gains (LTCG) tax structure. The government has signaled a willingness to listen to this feedback as it aims to sustain economic growth near the 7% mark.
For investors, this signals a potential easing of fiscal policy in the upcoming Budget 2027. Reducing or adjusting the LTCG tax could make Indian equities more attractive to foreign capital, potentially stabilizing inflows and boosting market sentiment. However, the government must balance this relief with revenue needs. Market participants will closely watch the final budget announcements to see if specific tax concessions are introduced to address these structural concerns.
Excerpt from Mint
FM Nirmala Sitharaman said the government recognizes investor concerns about India’s investment climate and will consider feedback as it seeks to sustain growth near 7%. She acknowledged rising foreign investment outflows. Finance Minister Nirmala Sitharaman acknowledged concerns foreign portfolio investors (FPIs) and…Read the original at Mint
Key takeaways
- Category: Economy.
- Assessed as a significant, market-relevant update.
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