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

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.Any thoughts on today's newsletter? Share them with the team. The big storyThe 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. On Monday, Reuters reported that India's capital market regulator has urged the government to scrap the LTCG tax for foreign investors. One of India's oldest and most prominent industry bodies, PHD Chamber of Commerce and Industry, last week asked the government appealing to abolish the tax.It argued that t...