CEA Nageswaran Hints at Capital Gains Tax Review, Major PSU Disinvestment Ahead

• Chief Economic Advisor V. Anantha Nageswaran suggests scope for improving capital gains tax structure, especially for debt instruments, to strengthen capital markets.
• Economic Survey proposes reducing government stake in PSUs to 26% with 'special proposal rights', aligning with the 2021 disinvestment policy to boost non-tax receipts.
• Nageswaran warns against large state-led 'cash transfers', citing concerns about financial health, work ethic, and long-term sovereign borrowing costs.
• Indian Rupee's performance is linked to India-US trade talks; a resolution could improve foreign investor perception and strengthen the currency.
• New 'Disciplining Swadeshi' mantra emphasizes quality and global competitiveness for Indian industries, with protection tied to productivity and export capability.

Why It Matters: CEA Nageswaran signals potential capital gains tax reforms, significant PSU disinvestment, and cautions against freebies.