Recent Tax Changes Won't Deter Market Investment, Says Piyush Goyal
The budget lays a strong foundation for India to potentially become the third-largest economy globally, Goyal said.
Recent tax changes would not significantly deter investment in the stock market, said Commerce and Industry Minister Piyush Goyal, while addressing the Post Budget discussion organised by the National Stock Exchange on Saturday.
In the 2024 Union Budget, presented by Finance Minister Nirmala Sitharaman on Tuesday, the annual capital gains exemption limit has been set at Rs 1.25 lakh. The Securities Transaction Tax on futures and options has been increased to 0.02% and 0.1%, respectively. Additionally, the long-term capital gains tax rate has been raised from 10% to 12.5%, while short-term capital gains tax has been hiked from 15% to 20%. Listed financial assets held for over a year will now qualify as long-term.
The budget lays a strong foundation for India to potentially become the third-largest economy globally, Goyal said. Over the past three years, India has maintained an impressive growth rate of 8%, he emphasised.
Infrastructure development would reduce logistics costs, fostering economic growth, according to the minister. India could sustain a 10% growth rate in nominal GDP terms, provided it avoids populist measures and handouts, he projected.
For the common man, the budget prioritises the needs of the poorest and promotes skill development among youth. With significant provisions aimed at easing everyday life and over Rs 11 lakh crore allocated for infrastructure, the budget is designed to enhance business conditions and support overall industry and economic growth, ultimately benefiting the middle class, he said.
