As anticipation builds ahead of the Union Budget announcement, financial expert Sushil Sarawgi has outlined his key expectations, focusing on capital gains taxation, infrastructure investment, corporate tax reforms, and positioning GIFT City as a global commodity hub. His insights shed light on the policy measures he believes could bolster India’s economic resurgence.

Capital Gains Tax Reforms to Boost Investment

Sarawgi advocates for a rollback of increases in capital gains tax, arguing that a rational tax structure is essential for sustained growth in Indian capital markets. “Long-term economic stability depends on businesses operating profitably. A tax-friendly approach to capital gains will encourage investments and ensure market sustainability,” he stated. He recommends revisiting short- and long-term capital gains tax policies to enhance investor confidence.

Strengthening Infrastructure Through Capital Expenditure

Sarawgi underscores the importance of increased capital expenditure to drive infrastructure development. “The government must not only increase its capital spending but also incentivize states to enhance their infrastructure. Robust infrastructure investment is a proven catalyst for job creation and economic expansion,” he noted. Additionally, he suggests targeted relief measures for the private sector to complement public investments, ensuring a balanced economic recovery.

Progressive Corporate Tax Reforms to Attract Investments

To bolster business profitability and attract foreign investments, Sarawgi calls for progressive corporate tax reforms. “Gradually reducing corporate tax rates will create a more business-friendly environment, leading to higher GDP growth,” he explained. A competitive tax regime, he believes, will encourage companies to expand their operations in India, strengthening the country’s economic foundation.

GIFT City: India’s Next Global Commodity Hub

A major expectation from the budget is the transformation of GIFT City into a world-class commodity trading center, comparable to Dubai and Singapore. “A crucial step would be enabling tax-neutral relocation of holding company structures to GIFT City IFSC and creating policies that attract global investors. This move will strengthen India’s role in international trade and finance,” Sarawgi said. He also highlights the need for tax incentives that facilitate the migration of investment vehicles to GIFT City, making it a preferred financial hub.

Clarity on Crypto and NFT Regulations

With the growing prominence of cryptocurrencies and NFTs, Sarawgi stresses the necessity of clear regulatory frameworks. “Ambiguity around crypto investments is leading to unregulated transactions. The government must implement a rational tax structure to bring transparency and bolster investor trust,” he remarked. He points to global trends, such as former U.S. President Trump’s cryptocurrency initiatives, as an indication that India must take a proactive stance on digital assets.

Encouraging Sovereign Pension Fund Investments

Sarawgi also proposes tax exemptions for sovereign pension funds to attract long-term capital inflows. “Exemptions for sovereign pension funds could provide much-needed stability and liquidity to the economy,” he suggested. Furthermore, he advocates for integrating innovative investment vehicles like crypto and NFTs within a regulated framework to harness new financial opportunities.