Bernstein says LTCG tax cut alone may not revive FPI inflows
In short
Bernstein’s Venugopal Garre said a lower long-term capital gains tax would be good for a capital-starved economy, but it would not alone bring lasting foreign investor money back.
The report was about whether cutting LTCG and STCG could revive FPI flows. It is not stated whether any tax change will happen, or when.
What the reporting says
Bernstein’s Venugopal Garre said a lower long-term capital gains tax would be desirable for a capital-starved economy, but would not by itself trigger sustained foreign institutional investor inflows. The comment came in a Market report about whether cutting LTCG and STCG could revive flows. The immediate implication is that tax reform may help sentiment, but the reporting does not say what policy change, if any, will follow.
Why it matters
Bernstein’s Venugopal Garre said a reduction in long-term capital gains tax could support a capital-starved economy, but the available reporting says it would not on its own restore sustained foreign portfolio or institutional inflows. The story is about market expectations around tax policy and overseas flows, not a confirmed policy move. No official change, timing, or quantified impact was stated.