Finance Minister (FM) Nirmala Sitharaman expressed that the government would be interested in discussing the elimination of long-term capital gains (LTCG) tax during Budget consultations. This has come as both domestic and international investors are questioning equity taxation.
At the event of Bloomberg New Economy Forum in New Delhi, the Finance Minister said that the discussion also includes the securities transaction tax (STT) and the potential for uniform treatment across various asset classes.
“LTCG, many individuals are discussing, including both Indian and international investors,” she mentioned.
“This discussion regarding STT in the market and the issue of uniformly addressing all asset classes involves considerable debate. This discussion is beneficial for health,” Sitharaman stated.
The finance minister observed that private investment was flowing into areas such as renewable energy and semiconductor manufacturing.
“It’s not only AI; it also involves semiconductors, including semiconductor chips, design, and packaging.” India is advancing into domains that will facilitate AI,” she added.
Sitharaman said that India has drawn investments in data centres, semiconductors, transmission lines, renewable energy, green hydrogen, and green ammonia. She added that the government had opted to produce both sophisticated, finer-nanometre chips and simpler chips that are still important for a substantial part of the economy.
Regarding infrastructure funding, Sitharaman announced that the National Infrastructure Pipeline, launched in late 2019, has crossed the $4.5 trillion mark.
She mentioned the National Bank for Financing Infrastructure and Development (NaBFID) and the National Investment and Infrastructure Fund (NIIF) as organisations that help mobilise capital for infrastructure development.
“Over the past decade, India has excelled in every sector that needed it. This momentum will persist,” she mentioned.
Finance Minister stated that local investment is shifting towards renewable energy, chip design, biosimilars, drug production, and maintenance, repair, and overhaul (MRO) centres.
She stated that India’s civil aviation sector is growing at a rate of approximately 16% and emphasised the investment opportunities in this sector.
In the context of the rupee, Sitharaman emphasised that the Reserve Bank of India (RBI) would continue its efforts to manage volatility rather than targeting a fixed exchange rate.
They are not trying to stabilise the rupee. They are trying to mitigate the volatility, and for this, the RBI is exerting effort; the measures will be continued, she stated.
Furthermore, the Finance Minister stated that India’s macroeconomic fundamentals are strong and emphasised that the government has exercised prudence regarding fiscal discipline.
Source: www.tribuneindia.com
