Congress slams Modi govt over market slide, capital gains tax policy

Congress leaders have accused the Modi administration of implementing capital gains tax policies that disproportionately impact retail investors and the middle class amid ongoing volatility in domestic equity markets.

The opposition party pointed to recent foreign institutional investor (FII) outflows and declining market indices as evidence of deteriorating investment confidence. Congress representatives argued that the government's taxation framework on stock market investments places an excessive load on ordinary Indians seeking to grow their savings through equity participation.

The party contended that while market conditions remain challenging, the government's tax policies exacerbate the burden on middle-class savers who lack the financial resources of institutional investors or high-net-worth individuals. Congress officials said the administration should reconsider its approach to capital gains taxation to provide relief to retail investors.

The criticism reflects broader opposition concerns about economic management as markets have faced headwinds from multiple factors including global monetary tightening and sectoral shifts in investor sentiment. The Congress position suggests the party plans to use tax policy and market performance as election-year ammunition against the government.