# Inside India newsletter: India weighs a tax cut to win over foreign investors. Will it work?

- URL: https://talkfuse.com/story/inside-india-newsletter-india-weighs-a-tax-cut-to-win-over-foreign-investors-will-it-work/
- Published: 2026-11-05T00:04:36+00:00
- Updated: 2026-11-05T00:22:04+00:00
- Original publisher: CNBC (publisher lean: Centre)
- Original article: https://www.cnbc.com/2026/11/05/india-tax-foreign-investors-nifty.html
- Topics: Asia, Business, World

## Key points

- India may scrap capital gains tax for foreign investors.
- Foreign investors have pulled out more than $30 billion this year.
- Experts say tax relief alone may not restore the market’s appeal.

## Summary

India is considering removing long-term capital gains tax for foreign portfolio investors as regulators and business groups seek to reverse a sharp decline in overseas investment. Finance Minister Nirmala Sitharaman said she would consider calls to review the tax, which supporters say could make Indian markets more competitive with other emerging markets.

Foreign investors have withdrawn $18.9 billion from Indian equities in 2025 and more than $30 billion so far this year, while their share of Indian stocks has fallen to a record-low 14%. Experts say a tax change could improve sentiment, but may not be enough: India trades at 18.6 times forward earnings, above Taiwan and South Korea, while its expected earnings growth is slower than in other emerging markets.

---
Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.