In a post addressed to PMO India and the Ministry of Finance, Chadha claimed that India is losing nearly $1 billion in foreign capital daily. He noted that since July 2024, following hikes in capital gains tax and STT, foreign outflows have cumulatively touched around $100 billion, making Indian markets less attractive on the global stage.
He cautioned that such trends could undermine India’s ability to attract long-term, patient risk capital, which is critical to funding the country’s growth ambitions. According to Chadha, the current tax regime risks reversing the benefits of earlier structural reforms that had enhanced India’s appeal among global investors.
Highlighting the government’s track record of responsiveness, he pointed to past instances where feedback on taxation across Goods and Services Tax (GST) and income tax led to course corrections and relief measures. He urged policymakers to once again take a relook at the current framework to restore investor confidence and stem capital outflows.
“Honourable @PMOIndia and @FinMinIndia… We are losing foreign capital of almost $1 billion a day. Since July 2024, post hike in capital gains tax and STT, we have lost $100 billion and our markets have become globally unattractive. We need patient risk capital to fund our growth story. It’s undoing the good work done through various reforms. A responsive government like yours has always taken feedback on taxation, GST, income tax and given relief,” Chadha’s tweet said.
Honourable @PMOIndia and @FinMinIndia
We are losing Foreign Capital of almost $1 Bn a day. Since July 2024, post hike in capital gain tax and STT, we have lost $100 Bn and our markets have become globally unattractive .we need patient risk capital to fund our growth story.… pic.twitter.com/nq6idgnatb
— Gurmeet Chadha (@connectgurmeet) April 2, 2026
The remarks come at a time when Indian equity markets have been grappling with persistent foreign institutional investor (FII) selling, adding pressure to valuations and overall sentiment.Foreign institutional investors (FIIs) have sold domestic equities worth Rs 19,837 crore in just two sessions in April, extending the sell-off to Rs 1.51 lakh crore in 2026. In March, they sold shares worth Rs 1,17,775 crore, while offloading Rs 35,962 crore worth of shares in January. In a reversal of sorts, they ended up net buyers at Rs 22,615 crore.
Chadha regularly comments on stock market-related developments and broader economic issues, and the latest post comes on the back of new securities transaction tax (STT) rules that came into effect from April 1.
The government in its February Budget had announced a rise in STT charges on futures and options (F&O) trades from April 1. The Union Budget 2026 increased STT by 150% on futures and 50% on options. The futures segment faces the steepest adjustment. STT will rise to 0.05% of notional turnover from 0.02%, a levy applied to the full contract value rather than just premiums paid.
The Complete Circle Consultants Managing Partner and CIO has been demanding rationalisation in long-term capital gains (LTCG) tax to 10% for the long term.
Currently, long-term capital gains on listed equity shares and units of mutual funds are exempt up to Rs 1.25 lakh. This applies to securities held for 12 months or more. Meanwhile, selling equity shares within one year of holding incurs a short-term capital gains (STCG) tax of 20%. It was 15% prior to July 23, 2024.
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