Tariff Shock Nearing Peak, Budget Must Prioritise Foreign Capital: Divam Sharma

• Divam Sharma of Green Portfolio PMS believes tariff-driven disruption is peaking, not beginning a long cycle.
• He suggests the Union Budget 2026 should offer tax holidays/incentives for FDI in strategic sectors to attract foreign capital.
• Sharma advocates for reducing or waiving short-term and long-term capital gains tax, especially for overseas Indians.
• Despite global headwinds, India's domestic fundamentals (consumption, macro indicators, FTAs) remain constructive.
• Defence sector is expected to attract capital in 2026 due to increased domestic spending and export opportunities.

Why It Matters: Tariff shocks are peaking; India's Budget 2026 must attract foreign capital through tax reforms and incentives.