Rupee Needs a Comeback Plan! SBI Research Says Tax Reforms and Stronger Foreign Investment Could Help Turn the Tide 💸

SBI Research urged tax reforms and clearer rules to boost foreign capital, recommending longer equity holding periods and removal of long-term capital gains tax for equity, clearer withholding tax guidance on ECBs, and faster repatriation of export proceeds. It warned RBI measures have limits, cited large FPI outflows, and flagged risks from rising Brent crude and a narrower BoP surplus.