The India Federation for Investors and Global Trade (IFIGT) has submitted its comprehensive Pre-Budget Recommendations for Union Budget 2026 (Pertaining to India’s Investment and Capital Markets – FY 2026-27) to the Ministry of Finance, Government of India.

This submission highlights ten key structural and taxation reforms aimed at strengthening India’s financial markets, improving ease of investment, and aligning regulatory frameworks with global standards. The proposals are built upon data-backed analysis and extensive stakeholder consultation across the financial services sector.

Key Recommendations:

The paper, co-developed with Finogent Solutions LLP as Knowledge Partner, calls for reforms across the full spectrum of India’s investment landscape, including:
• Rationalisation of Securities Transaction Tax (STT) and elimination of double taxation with Capital Gains Tax.
• Simplification of Capital Gains and Dividend Tax structures, aligned with global benchmarks.
• Revision of GST on financial services to reduce investor cost burden.
• Acceleration of CKYC portability and fully digital investor onboarding across financial regulators.
• Phased rollout of T+0 settlement with supporting liquidity infrastructure.
• Revival of concessional 5% tax for foreign portfolio investors (FPIs) in the debt market.
• Reforms to the Liberalised Remittance Scheme (LRS) and TCS structure to promote responsible global diversification.
• Formation of a Financial Sector Coordination Council for unified policy alignment between SEBI, RBI, IRDAI, and PFRDA.

Strategic Objective;

The recommendations are aimed at enhancing market depth, liquidity, and transparency while reducing regulatory friction for both domestic and international investors.

Mr. Rajat Dhar, Director (Investments), IFIGT, stated:
“India’s financial markets are at an inflection point. Policy fine-tuning can convert India’s strong retail investor base into a globally competitive investment hub. Our recommendations focus on pragmatic reforms that lower friction, attract long-term capital, and align India’s fiscal policies with international best practices.”
He added that IFIGT remains committed to constructive engagement with the Ministry of Finance, SEBI, and NITI Aayog to support progressive capital market policies that accelerate India’s journey towards becoming a US$5 trillion economy.

About the Report:

The Pre-Budget Recommendations 2026 Report consolidates quantitative analysis, international benchmarking, and actionable policy suggestions under ten focus areas — covering taxation, investor protection, regulatory coordination, and market infrastructure.

A summary of the report and the full version are available for public reference at:
https://investtradeindia.org/press-release/publications-pre-budget-recommendations-2026/