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Tax Relief for Debt, Silence on Equities: Foreign Investors Still Want Answers

BusinessManasi Praharaj05 Jun 2026

Mr. Sachin Sawrikar, Founder and Managing Partner, Artha Bharat Investment Managers

"Removing the tax friction on government securities for FPIs is a good step. In FY26, debt was the one segment that held steady. FPIs were net sellers in equities through much of the year. This ordinance protects what is working.  But the two pools of capital are different investors with different mandates and different return expectations. Making gilts cheaper to own does not address why long-only equity investors have been cautious on India. The capital gains structure, the currency risk, the valuation premium over peers. That is where the silence is.  The real ask from foreign investors has always been on equities. That remains unanswered."