Budget 2026: India Must Reward Long-Term Capital for Sustainable Growth
Business
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News18•27-01-2026, 11:31
Budget 2026: India Must Reward Long-Term Capital for Sustainable Growth
- •India's current financial and tax ecosystem unintentionally favors short-term investor behavior, misaligning with long-term growth ambitions.
- •Tax structures define 'long-term' with short holding thresholds, and frequent policy changes create uncertainty, encouraging quick exits.
- •Flagship schemes like PLI focus on output and period-specific incentives, not capital retention or reinvestment beyond the incentive window.
- •The evolving growth model requires patient capital for manufacturing, supply-chain resilience, and domestic value addition, which transient capital cannot deliver.
- •Budget 2026 is an opportunity to rebalance the ecosystem by rewarding long-duration commitment through tax frameworks, stability clauses, and outcome-linked incentives.
Why It Matters: India needs to shift its policy and tax incentives to reward long-term capital commitment for sustainable growth.
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