Neutral impactEconomy
Nilesh Shah of Kotak says easing tax burden may help attract foreign flows, but won't be enough
Mint 59 min ago·16 Oct 2026, 6:30 am
Nilesh Shah, the Chief Executive Officer of Kotak AMC, suggests that reducing the tax burden on capital gains could help India attract more foreign investment. He believes that making the market more attractive to global investors is a positive step, but it may not be sufficient on its own to drive significant inflows.
Shah notes that the current reallocation of portfolios by global investors is more about shifting assets to other regions rather than a complete exit from India. This means that while tax reforms are a good signal, they are not the primary reason why money is moving in and out of the country.
Investors should watch for the pace of these portfolio shifts and how other global economic factors influence foreign capital flows into emerging markets. It is important to remember that global money moves based on a variety of complex reasons beyond just tax rates.
Key takeaways
- Category: Economy.
- Assessed as a significant, market-relevant update.
Why it matters
A meaningful update worth tracking. Use the price and stock snapshot to gauge how the market is responding.
