Hello, this is Priyanka Salve, writing to you from Singapore.
Welcome to the latest edition of "Inside India" — your one-stop destination for stories and developments from the world's fastest-growing large economy.
Once a favorite emerging market for foreign investors, Indian equities have been losing their charm. Foreign holdings of Indian stocks are currently at an all-time low of 14%. Now a tax cut, which puts India on par with several Asian markets, is being proposed to win back these investors.
This week, I spoke with experts to find out whether a tax cut alone can restore the Indian stock market's appeal to foreign investors.
The clamor for removing tax on long-term capital gains, or LTCG, on foreign portfolio investors is rising in India as the country's equity markets witness record capital outflows.