Vinit Nahata, Chair of the Economic Affairs Committee of the PHD Chamber of Commerce and Industry (PHDCCI), has called for further tax reforms to attract foreign investment, reduce the cost of capital for Indian companies and strengthen the country’s foreign exchange reserves.
Nahata was part of a PHDCCI delegation that met Union Finance Minister Nirmala Sitharaman at her office on November 10, 2026. The delegation was led by PHDCCI President Anil Gupta and included Dr Ranjeet Mehta, CEO and Secretary General, besides Nahata.
During the interaction, Nahata congratulated the Finance Minister on the decision to abolish the 20 per cent withholding tax and 12.5 per cent Long-Term Capital Gains (LTCG) tax on Sovereign Government Securities issued by the RBI for Foreign Portfolio Investors (FPIs).
He described the move as a potential game-changer in attracting substantial overseas investment, particularly at a time of uncertainty arising from the West Asian crisis. According to him, the decision could help strengthen the rupee against the dollar by encouraging foreign capital inflows.
Taking the argument further, Nahata urged the government to extend similar tax relief to corporate debentures. He said removing taxes on these instruments would make post-tax yields more attractive for foreign investors, encourage overseas funds to flow into Indian companies, lower their cost of capital and augment the country’s forex reserves.
The delegation also submitted a set of policy recommendations covering several important economic and financial issues. These included Long-Term Capital Gains (LTCG) tax, Securities Transaction Tax (STT), rationalisation of Non-Performing Asset (NPA) norms for MSMEs, loans under the PM MUDRA Yojana and the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
The recommendations were aimed at improving access to finance for small businesses, facilitating MSME expansion, encouraging investment and creating a more supportive business environment.
The delegation congratulated Sitharaman on the government’s initiatives to strengthen India’s industrial and economic ecosystem and apprised her of PHDCCI’s ongoing work to promote industrial growth, improve ease of doing business, facilitate international trade, boost exports and attract investments.
The chamber also stressed the need for stronger and continuous engagement between the government and industry to address emerging economic challenges and accelerate India’s industrial development.
Nahata’s intervention on corporate debenture taxation added an important capital-market dimension to the chamber’s broader representations, linking tax rationalisation with foreign investment, currency stability and the financing needs of Indian industry.
