The Tax Terrorism Machine: How India Taxed Its Way Out of Foreign Capital, and Why LTCG on Listed Equity Must Be Abolished
SumanSpeaks Independent Capital Markets & Geopolitical Intelligence LTCG TAX | FPI FLOWS | INDIA POLICY The Tax Terrorism Machine: How India Taxed Its Way Out of Foreign Capital, and Why LTCG on Listed Equity Must Be Abolished Foreign portfolio investors have pulled ₹3.04 lakh crore out of Indian equities in 2026, SBI Research now wants the long-term capital gains tax scrapped, while Singapore, Hong Kong and the UAE do not tax genuine investment gains at all. A briefing for FIIs, FPIs, NRI investors in the US, Europe and the Gulf, and global fund managers weighing their emerging markets equity allocation. Let me begin with a number. Foreign portfolio investors have withdrawn ₹3.04 lakh crore from Indian equities in 2026 so far, according to NSDL-based reports on 11 October. ₹44,166 crore of that left in the first ten days of October alone. The whole of 2025 saw ₹1.66 lakh crore go out. 2026 has already beaten it by a wide margin, and t...

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